Complaint Filed Against Buttonwood Financial Group Over Fund Fees
by Admin Istrator | November 30, 2021 10:37 pm
Jon McGraw (CRD 2056654) and Buttonwood Financial were named in an SEC complaint. According to the complaint, filed in the United States District Court for the Western District of Missouri, Buttonwood allegedly charged transaction fees that should have been otherwise been included as part of the client’s advisory agreement.
Nearly all of Buttonwood’s clients were in wrap fee accounts. These clients paid an “all-in” annual advisory fee. This fee included investment advice as well as all transaction costs.
The complaint alleges that clients were placed in more expensive funds so Buttonwood and Jon McGraw could avoid paying transaction costs.
The SEC alleges that there was a financial conflict of interest.
The complaint seeks permanent injunctions, disgorgement and civil penalties.