This week, it was announced that the Securities and Exchange Commission had charged an investment adviser with defrauding clients. Stephen Brandon Anderson has been accused of overcharging advisory fees of at least $367,000. The SEC’s order explains that Anderson owned and operated River Source Wealth Management LLC.
The now-defunct investment adviser was located in North Carolina. Its primary revenue stream was customer advisory fees. Customer agreements explained that the fees would be based on each client’s assets under management. The SEC alleges that in 2015 and 2016 Anderson overcharged a majority of his clients.
The amount and percentages of the overcharges varied. Many times, they amounted to approximately 40% more than the agreed-upon maximum customer advisory fees. Further details have been made available here.
