SEC Charges Advisor With Fraud

On Jul. 1, SEC charged advisor with defrauding retail customers.

  • Fieldstone Financial Management Group and principal Kristofor Behn, defrauded retail clients by failing to disclose conflicts of interest on their recommendations.


  • 2014-2016, approximately 40 retail clients of Behn and Fieldstone invested over
    $7mn in Aequitas securities, who were subject of a previous enforcement action.
  • Defendants did not disclose Aequitas had provided Fieldstone with $1.5mn loan
    and access to $2mn line of credit, creating an incentive to recommend Aequitas.
  • Defendants made false claims and omissions in reports, stated that repayment
    terms of loan from Aequitas was not contingent on clients investing in Aequitas.
  • In addition, defendants fraudulently induced client to invest $1mn in Fieldstone.
  • Within days of Fieldstone receiving $1mn, Behn used about $500k to pay his
    personal taxes and make other payments to himself or for his personal benefit.


  • Fieldstone and Behn fined on joint-and-several basis, disgorgement and interest
    of $1mn and fine of $275k, all of which will be distributed to affected investors.