SEC settles fraud charges against investment advisor

The Securities and Exchange Commission has settled charges of fraud against Stinson Beach-based Financial Design Associates Inc. and its president Albert L. Coles, Jr.

The firm allegedly misled clients and federal authorities by representing to them that it was a “fee-only” advisor when in fact it received commissions for placing them into a particular investment with a mortgage finance company, according to the SEC.

Coles and the firm have agreed to a settlement without admitting or denying the allegations, and will pay more than $361,307 in undisclosed commissions as well as a $40,000 civil penalty.

The firm, which manages around $85 million in client funds, allegedly received $361,307 in commissions and interest between 2002 and 2006 for client referrals under the agreement with the mortgage finance company.

businessBusiness & Real Estate

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

U.S. Attorney David Anderson announces federal firearms charges against two men for their roles in a March 2019 shooting outside the Fillmore Heritage Center in a news conference alongside SFPD staff at the Phillip Burton Federal Building on Thursday, Jan. 9, 2020. (Kevin N. Hume/S.F. Examiner)
Departing U.S. attorney predicts corruption probe will continue

David Anderson shook up City Hall as top federal prosecutor

Board of Supervisors President Shamann Walton has been asked to mediate union contract talks. (Kevin N. Hume/S.F. Examiner)
Supervisor Walton tapped to mediate teacher contract talks

District and union at odds over hours in-person students should be in the classroom

California is set to receive supplies of the Johnson & Johnson vaccine, which is still under review by the U.S. Food and Drug Administration. (Courtesy photo)
California could receive 380K doses of new J&J COVID vaccine next week

California could receive 380,300 doses of the new Johnson & Johnson vaccine… Continue reading

Disability advocates protested outside the home of San Francisco Health Officer Tomas Aragon. (Courtesy Brooke Anderson)
Vaccine rollout plan for people with disabilities remains deeply flawed

On February 13, disability activists paid a visit to the house of… Continue reading

A Bay Area Concrete Recycling facility that opened on PG&E property in 2019. Former PG&E employees have been accused of accepting bribes from Bay Area Concrete. (Courtesy of Bay Area Concrete Recycling via ProPublica)
Lawsuit reveals new allegations against PG&E contractor accused of fraud

By Scott Morris Bay City News Foundation Utility giant Pacific Gas &… Continue reading

Most Read