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Compliance failures related to cherry-picking scheme at two IA firms

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Photo: Jonathan Torgovnik/Getty Images

Julie DiMauro

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The SEC said the firms failed to supervise advisers engaging in the fraudulent practice of preferentially allocating profitable trades at the expense of client accounts.

The SEC has brought charges against Cetera Investment Advisers LLC, a registered investment adviser based in Illinois, and First Allied Advisory Services, Inc., formerly a registered investment adviser based in California, settling a cease and desist order with both firms agreeing to pay $200,00 each to settle the claims.

William D

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