Schneider Downs Wealth Management Advisors, Lp

Allegations: SCHNEIDER DOWNS WEALTH MANAGEMENT ADVISORS, LP (SDWMA) UTILIZED THE MARKETING MATERIALS PROVIDED BY F-SQUARED IN WHICH SDWMA INVESTED CERTAIN CLIENT ASSETS. THE STRATEGY WAS BASED ON AN ALGORITHM THAT PRODUCED A SIGNAL INDICATING WHETHER TO BUY OR SELL ONE OF THE NINE EXCHANGE TRADED FUNDS (ETF) THAT MADE UP THE INDUSTRIES IN THE S&P 500 INDEX. F-SQUARED'S MATERIALS FALSELY STATED THAT (A) ASSETS HAD BEEN INVESTED IN THE ALPHASECTOR STRATEGY FROM APRIL 2001 TO SEPTEMBER 2008; AND (B) THE TRACK RECORD HAD SIGNIFICANTLY OUTPERFORMED THE S&P 500 INDEX FROM APRIL 2001 TO SEPTEMBER 2008. IN FACT, NO CLIENT ASSETS HAD TRACKED THE STRATEGY DURING THIS TIME. IN ADDITION, F-SQUARED MISCALCULATED THE HISTORICAL PERFORMANCE OF ALPHASECTOR FROM THIS TIME PERIOD BY INCORRECTLY IMPLEMENTING SIGNALS IN ADVANCE OF WHEN SUCH SIGNALS ACTUALLY COULD HAVE OCCURRED. THE SEC FOUND THAT SDWMA TOOK INSUFFICIENT STEPS TO CONFIRM THE ACCURACY OF THE HISTORICAL DATA AND OTHER INFORMATION CONTAINED IN THE MATERIALS. BETWEEN MARCH 2010 AND OCTOBER 2013 SDWMA RELIED ON THE MARKETING MATERIALS PROVIDED BY F-SQUARED AND DISTRIBUTED TO PROSPECTS AND EXISTING CLIENTS OF SDWMA. Status: Final Sanction Detail: THE FIRM PAID A CIVIL MONETARY PENALTY OF $100,000 TO THE SEC. Summary: WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, SDWMA SUBMITTED AN OFFER OF SETTLEMENT, WHICH THE SEC HAS ACCEPTED. SDWMA AGREED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND FUTURE VIOLATIONS OF SECTION 204(A) AND 206(4) OF THE ADVISERS ACT AND RULES 204-2(A)(16) AND 206(4)-1(A)(5) AND PAID A CIVIL MONETARY PENALTY OF $100,000 TO THE SEC.