Today, after an eight-day trial, a jury serving in the United States District Court for the Eastern District of Pennsylvania ruled in favor of the SEC against Bernard I. Bostwick, Robert E. Kauffman, and Adrian E. Young and their investment advisory firm, Ambassador Advisors, LLC, for breaching fiduciary duties in connection with mutual fund share class selection practices. Previously, the Court found that Ambassador Advisors failed to adopt and implement written policies and procedures reasonably designed to prevent violations of the Investment Advisers Act of 1940.  

Statement of SEC Division of Enforcement Director Gurbir S. Grewal:

“We are pleased with today’s jury verdict holding the defendants liable for investment advisory fraud. Investment advisers have fiduciary duties to act in their client’s best interest, to seek best execution of client transactions, and to fully and fairly disclose all material facts relating to conflicts of interest. And when they don’t, as the jury found today, they put their clients at risk. That’s why we will continue to pursue investment advisers who breach their fiduciary obligations.”

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More information:

On, May 13, 2020, the SEC filed its civil complaint: https://www.sec.gov/litigation/complaints/2020/comp24817.pdf

On December 20, 2021, summary judgment was entered against Ambassador Advisors, LLC for its violation of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4) thereunder: https://www.sec.gov/files/ambassador-smj-opinion.pdf