Investment firm to pay back $1.1M to Tucson-area investors after state probe | Business News

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Regulators alleged that the investments were unregistered securities under state law and that the sale of US military pensions or disability benefits is illegal under federal law.

Last October, the commission asked Smith & Cox and its principals to pay a refund of approximately $ 2.6 million and a fine of $ 105,000, but the company appealed the decision and that lawsuit is with Maricopa County Superior Court pending.

In the most recent case, regulators found that AE Wealth learned of government action against Smith & Cox in September 2019, which changed its name to Cornerstone Wealth Management, but did not disclose it and continued to allow Smith & Cox to act as investment advisor eight For months to his customers.

Chris Radford, president of AE Wealth Management, said after the state filed its lawsuit and the company learned more, the company terminated the advisors involved and given affected clients the opportunity to move their assets freely without sanctions.

“We take these incidents very seriously; As a result, we are also reimbursing all advisory investment fees to the affected clients, ”Radford said in an email.

A portion of the litigation involving five remaining defendants – Cornerstone Wealth Management LLC, Nathaniel S. Barnhart, Christopher Spence Cox, William Andrew Smith, and Smith & Cox LLC – is still pending with the Corporation Commission.

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