{"id":6125,"date":"2017-03-15T17:55:30","date_gmt":"2017-03-15T22:55:30","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1486"},"modified":"2022-05-19T09:33:32","modified_gmt":"2022-05-19T14:33:32","slug":"securities-news-sec-orders-voya-pay-3-1m-not-disclosing-mutual-fund-sale-related-payments-finra-bars-ex-waddell-reed-broker-alabama-pension-fund-loses-millions-ponzi-scam","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-news-sec-orders-voya-pay-3-1m-not-disclosing-mutual-fund-sale-related-payments-finra-bars-ex-waddell-reed-broker-alabama-pension-fund-loses-millions-ponzi-scam\/","title":{"rendered":"Securities News: SEC Orders Voya to Pay $3.1M For Not Disclosing Mutual Fund Sale-Related Payments, FINRA Bars Ex-Waddell &#038; Reed Broker, and Alabama Pension Fund Loses Millions in Ponzi Scam"},"content":{"rendered":"<p><strong>Voya Accused of Not Disclosing Revenue Received for Mutual Fund Sales<\/strong><br \/>\nThe US Securities and Exchange Commission said that Voya Financial Advisors (VOYA) would pay approximately $3.1M to regulators and investors for not telling customers about revenue the firm was paid related to a mutual fund program that didn\u2019t bill transaction fees. Voya\u2019s clearing broker-dealer paid the firm a percentage of the money made from the mutual fund sales. This was information that should have been shared with investors.<\/p>\n<p>Also, since 2014, Voya and the third-party brokerage firm were involved in a separate agreement under which Voya provided certain administrative services in return for a percentage of service fees involving certain mutual funds. The regulator said that <a href=\"https:\/\/www.investorlawyers.com\/broker-misconduct.html\">these payments were a conflict because they gave Voya incentive to preference these funds<\/a> over other investments, which could have impacted what the firm recommended to advisory clients. As part of the settlement, Voya will pay about $2.6M of disgorgement, approximately $175K of interest, and a $300K penalty. The firm is not, however, denying or admitting to the SEC\u2019s findings.<\/p>\n<p><strong>Fired Waddell &amp; Reed Broker is Barred from the Securities Industry <\/strong><br \/>\nThe Financial Industry Regulatory Authority has barred an ex-Waddell &amp; Reed Inc. broker from the industry. Paul D. Stanley was fired from the firm last year for allegedly violating its policies regarding supervision, compensation, and conduct.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-news-sec-orders-voya-pay-3-1m-not-disclosing-mutual-fund-sale-related-payments-finra-bars-ex-waddell-reed-broker-alabama-pension-fund-loses-millions-ponzi-scam\/#more-6125\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Voya Accused of Not Disclosing Revenue Received for Mutual Fund Sales The US Securities and Exchange Commission said that Voya Financial Advisors (VOYA) would pay approximately $3.1M to regulators and investors for not telling customers about revenue the firm was paid related to a mutual fund program that didn\u2019t bill transaction fees. Voya\u2019s clearing broker-dealer [&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":[3783,3752,3739,3799,3957,3792],"tags":[2777,2719,2778,2779],"class_list":["post-6125","post","type-post","status-publish","format-standard","hentry","category-broker-misconduct","category-financial-firms","category-finra","category-mutual-funds","category-pension-funds","category-ponzi-scams","tag-birmingham-water-works","tag-jason-galanis","tag-voya-financial","tag-waddell-reed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities News: SEC Orders Voya to Pay $3.1M For Not Disclosing Mutual Fund Sale-Related Payments, FINRA Bars Ex-Waddell &amp; Reed Broker, and Alabama Pension Fund Loses Millions in Ponzi Scam &#8212; Investor Lawyers Blog &#8212; March 15, 2017<\/title>\n<meta name=\"description\" content=\"Voya Accused of Not Disclosing Revenue Received for Mutual Fund Sales The US Securities and Exchange Commission said that Voya Financial Advisors (VOYA) &#8212; March 15, 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\/securities-news-sec-orders-voya-pay-3-1m-not-disclosing-mutual-fund-sale-related-payments-finra-bars-ex-waddell-reed-broker-alabama-pension-fund-loses-millions-ponzi-scam\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities News: SEC Orders Voya to Pay $3.1M For Not Disclosing Mutual Fund Sale-Related Payments, FINRA Bars Ex-Waddell &amp; Reed Broker, and Alabama Pension Fund Loses Millions in Ponzi Scam &#8212; Investor Lawyers Blog &#8212; March 15, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Voya Accused of Not Disclosing Revenue Received for Mutual Fund Sales The US Securities and Exchange Commission said that Voya Financial Advisors (VOYA) &#8212; March 15, 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=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities News: SEC Orders Voya to Pay $3.1M For Not Disclosing Mutual Fund Sale-Related Payments, FINRA Bars Ex-Waddell & Reed Broker, and Alabama Pension Fund Loses Millions in Ponzi Scam &#8212; Investor Lawyers Blog &#8212; March 15, 2017","description":"Voya Accused of Not Disclosing Revenue Received for Mutual Fund Sales The US Securities and Exchange Commission said that Voya Financial Advisors (VOYA) &#8212; March 15, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-news-sec-orders-voya-pay-3-1m-not-disclosing-mutual-fund-sale-related-payments-finra-bars-ex-waddell-reed-broker-alabama-pension-fund-loses-millions-ponzi-scam\/","twitter_card":"summary_large_image","twitter_title":"Securities News: SEC Orders Voya to Pay $3.1M For Not Disclosing Mutual Fund Sale-Related Payments, FINRA Bars Ex-Waddell & Reed Broker, and Alabama Pension Fund Loses Millions in Ponzi Scam &#8212; 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