Kauffman, identified on the firm's website as the founder of the company, is a resident of Tampa, Fla., but lived in Mount Joy, Pa., at the time of the alleged violations, the complaint said.
Young, a resident of Lititz, Pa., and the firm's executive vice president and chief compliance officer, has been with the firm since at least 2011, the complaint said.
Among the three individuals, Kauffman profited most from the 12b-1 fee charges, receiving between 42% and 52% of the revenues, the complaint said. Bostwick and Young received between 24% and 29% each, the SEC said.
Neither the firm nor its principals could be reached for comment at press time.