Name and Shame
Name and Shame

TIM PAGLIARA (CAPWEALTH ADVISORS) REVIEW

Complaint
#5YDQ8

This complaint was posted on NAS on 6th Jan, 2021 and is a permanent record located here: https://www.nameandshame.com/tim-pagliara-capwealth-advisors-5YCWE/horrible-financial-advisor-caught-hiding-conflicts-id5ydq8 .

NameandShame Author
The Smart Investor Feed
6th Jan, 2021

Horrible Financial Advisor Caught Hiding Conflicts!

Today, The Smart Investor Feed brings you another morally reprehensible fraud.


Tim Pagliara (CapWealth Advisors) has been seized/arrested by the U.S. Securities And Exchange Commission (SEC). Shocking right?


We weren’t expecting this as well, but these scammers are getting smarter by the minute, making it harder for us to identify.


Such swindlers seem to be booming in numbers lately. This case is kind of interesting, why don’t I show you why:

Full Report On Tim Pagliara (CapWealth Advisors)

The Securities and Exchange Commission today charged Franklin, Tennessee-based registered investment adviser CapWealth Advisors, LLC, its principal, Timothy J. Pagliara, and an advisory representative, Timothy R. Murphy, in connection with their mutual fund share class selection practices.


The SEC's complaint alleges that, from at least June 2015 until June 2018, CapWealth, Pagliara and Murphy, failed to adequately disclose conflicts of interest arising from their selection of mutual fund share classes that charged 12b-1 fees, instead of lower-cost share classes of the same funds that were also available to clients. According to the complaint, those 12b-1 fees were paid to an affiliated broker-dealer under common ownership and control with CapWealth, which in turn paid some of the fees directly to Murphy as compensation, and indirectly to Pagliara, through his majority stake in CapWealth's holding company. In addition, the complaint alleges that CapWealth, Pagliara and Murphy breached their duty to seek best execution for their clients' mutual fund share class purchases by causing certain advisory clients to invest in fund share classes that charged 12b-1 fees when share classes of the same funds that presented a more favorable value for the clients were available.


According to the complaint, CapWealth also failed to adopt and implement written policies and procedures designed to prevent these violations. CapWealth was eligible to self-report to the SEC pursuant to the Division of Enforcement's Share Class Selection Disclosure Initiative, but did not do so.


The Complaint alleges that CapWealth, Pagliara and Murphy violated Section 206(2) of the Investment Advisers Act of 1940, and that CapWealth also violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. The SEC seeks financial penalties against CapWealth, Pagliara and Murphy, as well as disgorgement of ill-gotten gains plus prejudgment interest from Pagliara and Murphy.


Conclusion: Tim Pagliara (CapWealth Advisors) Is A Fraud

The report on SEC clearly suggests that Tim Pagliara (CapWealth Advisors) never had any intentions to do honest business or provide helpful services. Main intention behind all their actions was to take advantage of the honesty & gullibility of people and scam them. It would be an understatement to call this a mere fraud, this one is a scandal.


If you feel like you are a victim of this scam, then I recommend contacting a law firm and consulting with them about a lawsuit. Companies & firms pay huge reprimands to settle serious lawsuits.

Help Us Fight These Criminals

Do you have evidence against Tim Pagliara (CapWealth Advisors) or one of their associates, then please post it here. These criminals rely on their witnesses’ & victims’ silence, if you speak up, then they get exposed and punished for their horrific acts. I started The Smart Investor Feed on this site with only one purpose; to become a nightmare for the financial frauds in the country. I try to post often, so you can bookmark my profile for regular updates on frauds & con-artists.


Full Disclosure: We sourced this piece of information from the SEC database


Evidence Box

0

No evidence added yet

Add your own evidence

No evidence added yet

Add your own evidence

View more complaints for Tim Pagliara (CapWealth Advisors)?

Comments

0