Atlantic Asset Management LLC (AAM)—Investing Client Funds in Certain Bonds with Hidden Broker Benefits

Rochester stockbroker fraud attorneyAtlantic Asset Management LLC (AAM) Allegedly Invested Client Funds in Certain Bonds with an Alleged Covert Financial Benefit to a Broker-dealer Connected to AAM

Atlantic Asset Management LLC (AAM) allegedly invested client funds in certain bonds with a hidden financial benefit to a broker-dealer connected to the firm, according to a recent SEC Complaint currently under review by attorneys Joe Peiffer and Alan Rosca.

AAM allegedly invested more than $43 million of client funds in illiquid bonds issued by a Native American tribal corporation but purportedly failed to disclose the conflict of interest that the sales of said bond generated a private placement fee for the broker-dealer, whose parent company partially owns AAM, according to the aforementioned Complaint.

“AAM’s clients should have been informed that the investments in illiquid bonds would financially benefit people with ownership control over AAM,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. The Peiffer Rosca Wolf securities lawyers are currently investigating Atlantic Asset Management LLC’s alleged conflict of interest regarding the investment of client funds in certain bonds.

AAM Partially Owned by BFG Socially Responsible Investing Ltd.; BFG’s Ownership Allegedly Not Disclosed in AAM’s Public SEC Filings

AAM is partly owned by an entity known as BFG Socially Responsible Investing Ltd., however, BFG’s ownership is allegedly not disclosed in AAM’s public SEC filings, according to a recent SEC Complaint currently under review by attorneys Joe Peiffer and Alan Rosca.

AAM, at the suggestion of a BFG representative, allegedly purchased the questionable, illiquid bonds on behalf of clients while still aware that the sales would generate a private placement fee for a broker-dealer affiliated with BFG, according to the Complaint.

AAM also allegedly was aware that profits from the bond sales were to be used to purchase an annuity provided by BFG’s parent company, the SEC Complaint reports.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of alleged investment conflicts of interest. They are currently investigating AAM’a alleged investment of client funds in certain bonds with a hidden financial benefit to a broker-dealer connected to the firm. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of AAM’s alleged investment of client funds in certain bonds with a hidden financial benefit to a broker-dealer connected to the firm may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1144 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.