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Statement on Favorable Jury Verdict Against Investment Adviser

Andrew Ceresney

Director, SEC Division of Enforcement

Aug. 13, 2014

“We are pleased that the jury found Benjamin Lee Grant and his investment advisory firm, Sage Advisory Group, liable for misleading Grant’s former brokerage customers while inducing them to transfer their assets to Grant’s new advisory firm.  This case sends an important message to investment advisers that they must put the needs of their clients before their own.  When brokers decide to convert their business to an investment advisory firm and want customers to follow them, they owe a duty of full and fair disclosure to those prospective advisory clients.”

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More Information:

  • SEC’s complaint in the case filed in 2010
  • SEC alleged that starting in October 2005, Grant engaged in a scheme involving false and misleading statements to induce his former brokerage customers to transfer their assets to Sage, his new advisory firm.
  • The trial began Aug. 4 in federal district court in Massachusetts and the jury deliberated for approximately two hours today before returning a verdict of liability for Lee and his firm
  • The court will determine sanctions at a later date
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