ALJ Delivers B Share Victory
As IM Insight goes to press . . .
"It is unproven that A shares always outperform B shares at the $250,000 level," said an SEC administrative law judge in a decision handed down late last week. In light of that conclusion, and in light of the fact that the SEC has two pending rulemakings that address sales loads and disclosure to fund investors, the ALJ dismissed the SECís fraud charges against three registered reps who allegedly omitted to state material facts relating to the relative performance of A shares and B shares.