SEC Says Robare Didn’t Disclose Advice-Tainting Payments
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Robare Group Ltd., a Houston-based money manager, recommended mutual funds to its clients without disclosing that it was receiving compensation from the broker offering the investments, U.S. regulators said.
Robare and co-owners Mark Robare and Jack Jones Jr. were paid a percentage of the amounts that clients invested in certain mutual funds as part of an undisclosed compensation arrangement with a brokerage firm, the Securities and Exchange Commission said in an administrative order filed today. The firm received $440,000 over eight years from the brokerage, which the SEC didn’t identify, according to the order.