In its complaint, the SEC is accusing the pair of carrying out the transfers "while concealing serious conflicts of interest, including the lucrative commissions Alderson and Hamilton each stood to-and did-receive. In doing so, defendants violated the fiduciary duty that every investment advisor has to its clients and prospective clients: to put the client's best interests first, employ utmost honesty, and fully disclose all material information, including actual and potential conflicts of interest."
The SEC complaint against Alderson and Hamilton alleges they violated the Investment Advisers Act of 1940 and seeks an injunction, disgorgement plus interest and civil money penalties.
Under the agreement with deVere USA, the company neither denied nor admitted to the charges, but consented to the SEC's order, which found that the firm violated the Advisers Act. The company agreed to pay the $8 million penalty and hire an independent compliance consultant, according to the SEC.