Ameriprise Financial has agreed to pay a $1.75 million fine to settle a SEC case for allegedly misrepresenting the performance of ETF strategies run by F-Squared.

The firm will also pay $7 million in disgorgement.

In a settlement released Friday, the SEC alleged that from December 2010 through October 2013, Ameriprise negligently relied on misrepresentations made by ETF manager F-Squared.

Ameriprise’s due diligence people had concerns about F-Squared’s contention that the performance of its flagship AlphaSector strategies prior to 2008 was based on actual results rather than backtests “because the historical performance could not be verified,” the SEC said in the settlement.

The due-diligence staff also had “outstanding questions about F-Squared’s transparency, including its refusal to provide composite performance for its historical track record as well as its refusal to reveal the name of the firm responsible for the algorithm or for the AlphaSector performance history that pre-dated F-Squared’s founding in 2006,” the SEC said.

Ameriprise approved the strategy for use by its advisors and “took no additional steps to verify the accuracy of F-Squared’s performance claims,” the SEC said.

In a statement, Ameriprise spokesman John Brine said the firm was “pleased to have reached a resolution on this industry matter, which dates back several years. F-Squared has acknowledged its representations were false and misleading.”

Nevertheless, “the strategies performed as designed and generated returns for our clients that were consistent with our expectations,” Brine added.

F-Squared settled a separate case with the SEC in 2014 for $35 million. The SEC alleged F-Squared’s performance claims prior to 2008 were hypothetical, not real, as F-Squared claimed.

In October 2017, a federal jury found the former F-Squared chief executive Howard Present liable in a separate case brought by the SEC.

The SEC settled two other F-Squared-related cases on Friday, one against Horter Investment Management LLC of Cincinnati, Ohio, and the other with Institutional Investor Advisers Inc., a Venice, Fla., firm that is no longer in business.

A call to Horter Investment Management was not immediately returned Monday.

Over the past several years, the SEC has settled more than a dozen cases against investment firms that flocked to F-Squared’s sector rotation strategy after the financial crisis.