Judge Orders Ambassador Advisors to Pay $2M Over 12b-1 Fee Infractions

The judgments, issued on Sept. 7, order the defendants to pay over $2 million in disgorgement, prejudgment interest and civil penalties as follows:

• Bernard I. Bostwick must pay $136,620 in disgorgement, $35,273 in prejudgment interest, and a $136,620 civil penalty;
• Robert E. Kauffman must pay $349,395 in disgorgement, $95,972 in prejudgment interest, and a $349,395 civil penalty;
• Adrian E. Young must pay $136,627 in disgorgement, $35,275 in prejudgment interest, and a $136,627 civil penalty; and
• Ambassador Advisors, LLC must pay a $622,642 civil penalty.

The judgments also order the defendants to correct and remove misleading statements from Ambassador Advisors LLC’s website and Form ADV materials, as well as to send a corrective notice about the case to their advisory clients.