Nearly a month before his registration with the Financial Industry Regulatory Authority ended on Jan. 31, Carson Group, led by Ron Carson, was hit with an excessive fee arbitration claim.
A Dec. 24, 2018, pending dispute listed on BrokerCheck alleges that CWM LLC, Carson’s investment advisor, improperly notified a product sponsor that the client was no longer a client of CWM, which resulted in the client being charged the product sponsor’s standard fees, instead of the lower negotiated rate.
The BrokerCheck disclosure states that CWM had negotiated with certain product sponsors unaffiliated with CWM to charge lower fees to CWM clients.
As a result, the client claims that it was overcharged fees by the product sponsor and also alleges that CWM’s investment advisory fees were excessive. (FINRA does not state whether the client is an individual, group of investors or entity.)
The client is seeking $500,000 in damages.
“For clarification, Carson, in fact, negotiated on the client’s behalf to save the client millions — not cost the client, as stated in the dispute,” Ron Carson said in a statement.