Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

Posted on June 30th, 2025 at 2:46 PM
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest. ThinkAdvisor reports that the SEC’s civil complaint accuses both Nagler and New Line of breaching their fiduciary duties to clients.

According to the SEC, Nagler and his firm falsely claimed they would “take care to assure” annual advisory fees would not exceed 2 percent of a client’s assets under management. In reality, they made no such effort and charged numerous clients above that rate. The complaint also alleges that New Line misrepresented its services by stating it “may” offer hourly fee arrangements, while in fact charging clients hourly without proper disclosure or acknowledgment of what the SEC perceived to be related financial conflicts, according to ThinkAdvisor.

Between April 2019 and December 2024, the SEC also contends that Nagler and New Line consistently overbilled advisory fees and invoiced clients for “consulting” services without their knowledge. The SEC alleges those practices violated anti-fraud provisions of the Investment Advisers Act of 1940 and seeks injunctions, disgorgement of ill-gotten gains, and civil penalties.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Ä¢¹½´«Ã½ Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Ä¢¹½´«Ã½.

Rick R.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.