{"id":4819,"date":"2017-12-11T22:34:47","date_gmt":"2017-12-12T04:34:47","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4738"},"modified":"2022-03-22T15:07:28","modified_gmt":"2022-03-22T20:07:28","slug":"westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/","title":{"rendered":"Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M"},"content":{"rendered":"<p>\t\t\t\tThe SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. McClure. The Connecticut-based, dually registered brokerage firm and investment adviser and its principal are accused of defrauding clients, costing them over $1M in losses.<\/p>\n<p>According to the regulator\u2019s <a href=\"https:\/\/www.stockbroker-fraud.com\" rel=\"noopener noreferrer\" target=\"_blank\">securities fraud<\/a> complaint, the investment advisory firm and McClure invested clients\u2019 money in risky securities on numerous occasions, resulting in hundreds of thousands of dollars in undisclosed mark-ups that went to Westport even as the clients lost more than $1M. The broker-dealer would allegedly buy securities from underwriters at a reduced rate and later re-sell them to its own clients at the full public offering price while keeping the difference. <\/p>\n<p>Westport and McClure are accused of making false and misleading representations to clients about the compensation that the financial firm received from their accounts. Also, the brokerage firm is accused of receiving 12b-1 fees, which are mutual fund distribution fees, when clients\u2019 money was placed in certain mutual fund share classes and again not telling clients about these fees. The SEC said that the fees created a conflict. McClure and Westport allegedly invested clients in mutual fund shares that charged these fees even when less expensive shares that didn\u2019t carry the fees could have been purchased instead.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/#more-4819\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. McClure. The Connecticut-based, dually registered brokerage firm and investment adviser and its principal are accused of defrauding clients, costing them over $1M in losses. According to the regulator\u2019s securities fraud complaint, the investment advisory firm and McClure invested clients\u2019 money [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3781,3738,3801,3760,3741],"tags":[2933],"class_list":["post-4819","post","type-post","status-publish","format-standard","hentry","category-broker-fraud","category-investment-advisers","category-investor-fraud","category-sec","category-sec-enforcement","category-securities-fraud","tag-westport-capital-markets"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M &#8212; Investor Lawyers Blog &#8212; December 11, 2017<\/title>\n<meta name=\"description\" content=\"The SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. McClure. The Connecticut-based, dually registered &#8212; December 11, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M &#8212; Investor Lawyers Blog &#8212; December 11, 2017\" \/>\n<meta name=\"twitter:description\" content=\"The SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. McClure. The Connecticut-based, dually registered &#8212; December 11, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M &#8212; Investor Lawyers Blog &#8212; December 11, 2017","description":"The SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. McClure. 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The Connecticut-based, dually registered &#8212; December 11, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M","datePublished":"2017-12-12T04:34:47+00:00","dateModified":"2022-03-22T20:07:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/"},"wordCount":461,"keywords":["Westport Capital Markets"],"articleSection":["Broker Fraud","Investment Advisers","Investor Fraud","SEC","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/","url":"https:\/\/www.investorlawyers.com\/blog\/westport-capital-markets-llc-accused-undisclosed-markups-investors-lose-1m\/","name":"Westport Capital Markets LLC is Accused of Undisclosed Markups as Investors Lose Over $1M &#8212; Investor Lawyers Blog &#8212; December 11, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-12-12T04:34:47+00:00","dateModified":"2022-03-22T20:07:28+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The SEC has filed civil charges against Westport Capital Markets LLC and principal Christopher E. 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