September 2, 2010
The SEC, its Enforcement Division, and every governing agency needs more regulation to protect the investor. We are currently involved in a situation involving what was a reputable fee only financial planning/investment firm. $104 million of investor money was invested in high risk, highly illiquid real estate and insurance premium financing funds that were presented to investors as safe and suitable proprietary investment pools for mostly retirees. The president of this firm was a former NAPFA president and the Chief Investment Officer had an extensive background in "alternative investments". Each of them received kickbacks from these investments of over $1.2 million each. Fee only? Where was the fiduciary responsibility to the client, how could this happen? Why are there not more strigent regulations to protect the investors? These insurance companies and premium fianancing scams must be stopped. The financial impact this has had on hard working,trusting people by a firm of such stature is beyond comprehension.