The complaint said CIRA failed to disclose that its investment advisor representatives received compensation in the form of forgivable loans in exchange for meeting certain criteria, such as maintaining certain asset levels and tenure with CIRA.
The complaint argues that “CIRA breached its fiduciary duty and regularly and repeatedly put its financial interests ahead of its clients” and also “continuously failed to disclose to its clients material facts about its conflicts of interest, including that some investment choices generated additional revenue for its affiliate Cambridge Investment Research,” which also is based in Fairfield, Iowa.
The complaint was filed in U.S. District Court in the Southern District of Iowa. The SEC is seeking disgorgement of any ill-gotten gains, interest, and civil penalties.