Under the agreement, in which FAM, Shamburger and Wedel neither admitted to nor denied the SEC's findings, FAM will pay disgorgement and prejudgment interest of $278,947 and an $85,000 penalty, the SEC said. Shamburger and Wedel agreed to pay penalties of $50,000 and $25,000, respectively.
A cease-and-desist order was also issued against FAM, Shamburger and Wedel; FAM was censured; and FAM agreed to relinquish its right to receive further trailing fees related to AFC III investments, according to the SEC.
Neither Shamburger nor Wedel immediately responded to a request for comment.