Investor Alleges Bernard Bostwick Failed to Recognize Wire Fraud

Bernard Bostwick (CRD #: 4327954), a broker registered with American Portfolios Financial Services, is the subject of a pending dispute, according to his BrokerCheck record, accessed on December 5, 2022. Investors may have also engaged his services through Ambassador Advisors. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

On September 26, 2022, an investor alleged that Bernard Bostwick failed to recognize and prevent the client from falling victim to wire fraud. This dispute is pending.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

SEC Regulatory Action

On May 13, 2020, the Securities and Exchange Commission filed a complaint against investment advisory firm Ambassador Advisors and Bernard Bostwick, Robert Kauffman, and Adrian Young as part owners, executives, and investment adviser representatives at the firm.

In this complaint, the SEC alleged that the defendants unlawfully invested advisory clients in mutual fund share classes with 12b-1 fees when lower-cost mutual fund share classes were available to the clients. Investors may be the victims of mutual fund fraud if they pay unnecessary fees. The SEC alleged that this occurred from at least August 15, 2014, through December 2018.

The SEC alleged that clients received a lower return on their investment by being invested in these particular mutual fund share classes and that Bernard Bostwick and the other defendants received greater compensation in the form of 12b-1 fee revenue.

The SEC further alleged that the defendants violated their fiduciary duty by failing to disclose this conflict of interest and by failing to seek best execution for their clients’ mutual fund transactions by investing them in these particular share classes.

Additionally, the SEC alleged Ambassador Advisors failed to adopt and enforce written policies and procedures reasonably designed to make mutual fund share class recommendations in clients’ best interest and to disclose the defendants’ relevant conflicts of interest.

The SEC alleged that Bernard Bostwick and the other defendants violated Section 206(2) of the Investment Advisers Act of 1940 and that Ambassador Advisors violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.

Investment Advisers Act of 1940

Section 206(2) of the Investment Advisers Act prohibits the use of fraudulent and deceptive practices and transactions.

Section 206(4) specifically prohibits investment advisers from engaging in acts or business practices that are deceptive, manipulative, or otherwise fraudulent.

Rule 206(4)-7 requires registered investment advisers to adopt and enforce written policies and procedures designed to prevent violations of the Investment Advisers Act and other rules, to conduct annual reviews of these policies and procedures, and to appoint a chief compliance officer.

Sanctions

As a result of this complaint, Bernard Bostwick was subject to the following sanctions:

• $136,620 disgorgement
• Unspecified other monetary penalty
• Correction and removal of misleading statements

Background Information

Bernard Bostwick has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 24 – General Securities Principal Examination

Bernard Bostwick is a registered broker in 40 states and the District of Columbia. He is also a registered investment adviser in Florida, Louisiana, Pennsylvania, and Texas.

He has also worked for the following firms:

• SevenOneSeven Capital Management (CRD#:305092)
• AXA Advisors (CRD#:6627)
• Equity Services (CRD#:265)
• NYLIFE Securities (CRD#:5167)

Kurta Law Can Help

If you worked with Bernard Bostwick and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.