The former chief executive of DeVere USA, Benjamin Alderson, and an ex-manager at the firm, Bradley Hamilton, have been handed penalties by the US Securities and Exchange Commission.
According to SEC documents, dated 8 July, “without admitting or denying the allegations of the SEC’s complaint, Alderson and Hamilton consented to the entry of the final judgments”.
Collectively, the men will pay $750,120 (£573,952, €637,502).
Alderson was ordered to hand over $400,060; comprising $265,000 in disgorgement, plus $10,060 in interest and a civil penalty of $125,000.
Hamilton is to pay the same in disgorgement and interest, but was hit with a civil penalty of $75,000; taking his total to $350,060.
The backstory
The case against the two men dates back to 2018 when they were accused of defrauding clients about the benefits of irreversibly transferring their UK pensions to an offshore pension plan, while concealing serious conflicts of interest.
DeVere USA separately agreed to pay an $8m civil penalty in June 2018 to settle its involvement in the case.
When contacted about the latest development, a spokesperson for DeVere Group told International Adviser: “The case refers to an administrative proceeding relating to two ex-representatives of the former US brand.
“Our company has not had operations in the US since 2018.
“Previously, the US business reached a full and final agreement with the SEC consistent with our commitment to clients and in the interest of putting the matter behind us,” the spokesperson added.
DeVere USA was sold to Hong Kong-based Brite Advisors in December 2018.
Banned
In addition to the financial penalties, Alderson has been “permanently restrained” from working in the industry.
Although he can appeal this after two years.
According to the SEC, Alderson “failed to inform clients and prospective clients of conflicts of interest in the form of commissions he stood to – and did- receive”.
“The complaint against that, in doing so, Alderson violated the fiduciary duty that every investment adviser has to its clients and prospective clients: to put the client’s best interests first, employ utmost honesty and fully disclose all material information, including actual and potential conflicts of interest.”
