Fusion Investment Advisors Llc

Allegations: IN NOVEMBER 2011 NEW YORK STATE BOARD OF FINANCIAL SERVICES, IN A BROAD-BASED SWEEP INVOLVING MULTIPLE AGENTS AND ALLIANZ ANNUITIES, FOUND THAT MR. WESSELS, SOLD AND DELIVERED IN THE STATE, AN ANNUITY CONTRACT ISSUED BY ALLIANZ LIFE INSURANCE COMPANY, AN UNAUTHORIZED ISSUER IN THAT STATE. MR. WESSELS CLIENT SIGNED THE CONTRACTS IN ANOTHER STATE AND 2 YEARS LATER CONTRADICTED THE SIGNED CONTRACT ORALLY TO REGULATORS. MR. WESSELS FULLY PAID THE MONETARY PENALTY CLASSIFIED OTHER THAN FINES AND STILL CONTENDS THAT THE CONTRACT SOLD WAS OUTSIDE THE STATE OF NEW YORK. Status: Final Sanction Detail: MR. WESSELS WAS NOT REQUIRED TO FINANCIALLY CONTRIBUT TO THE MONETARY SETTLEMENT. Summary: IN NOVEMBER 2011 NEW YORK STATE BOARD OF FINANCIAL SERVICES, IN A BROAD-BASED SWEEP INVOLVING MULTIPLE AGENTS AND ALLIANZ ANNUITIES, FOUND THAT MR. WESSELS, SOLD AND DELIVERED IN THE STATE, AN ANNUITY CONTRACT ISSUED BY ALLIANZ LIFE INSURANCE COMPANY, AN UNAUTHORIZED ISSUER IN THAT STATE. MR. WESSELS CLIENT SIGNED THE CONTRACTS IN ANOTHER STATE AND 2 YEARS LATER CONTRADICTED THE SIGNED CONTRACT ORALLY TO REGULATORS. MR. WESSELS FULLY PAID THE MONETARY PENALTY CLASSIFIED OTHER THAN FINES AND STILL CONTENDS THAT THE CONTRACT SOLD WAS OUTSIDE THE STATE OF NEW YORK.

Allegations: BASED ON THE INFORMATION PROVIDED BY THE ISSUER, MR. RIEDMILLER WAS LED TO BELIEVE THAT THE PROMISSORY NOTE WAS NOT A SECURITY; AS NOTED IN THE ORDER. THE ISSUER PROVIDED MR. RIEDMILLER WITH WRITTEN AND EVIDENCE OF THIS FACT AND ASSURED HIM OF THIS VERBALLY ON MULTIPLE OCCASIONS. Status: Final Sanction Detail: CONSENT AND FINE Summary: SALE OF AN UNREGISTRERE SECURITY AND ACTING AS AN AGENT BOTH TRANSACTING BUSINESS AND EFFECTING A SALE IN A STATE IAR WAS NOT REGISTERED.

Allegations: THE SEC ALLEGED RESPONDENT VIOLATED A NUMBER OF REGULATIONS UNDER THE INVESTMENT ADVISERS ACT OF 1940 PERTAINING TO MISLEADING DISCLOSURES ABOUT A HARD DOLLAR ARRANGEMENT; CHARGING FEES IN EXCESS OF THE DISCLOSED AMOUNTS; FAILURE TO RETAIN REQUIRED BOOKS AND RECORDS, INCLUDING CLIENT CORRESPONDENCE; AND FAILURE TO IMPLEMENT VARIOUS ASPECTS OF ITS COMPLIANCE POLICIES AND PROCEDURES. Status: Final Sanction Detail: RESPONDENT CONSENTED TO THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 203(E) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER ("ORDER"). RESPONDENT AGREED TO PAY DISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL MONETARY PENALTY TOTALING $258,466.35 AS FOLLOWS: (I) DISGORGEMENT OF $94,412.35 PLUS PREJUDGMENT INTEREST OF $14,054; AND (II) A CIVIL MONETARY PENALTY IN THE AMOUNT OF $150,000. Summary: ON SEPTEMBER 24, 2024, FUSION INVESTMENT ADVISORS CONSENTED TO AND BECAME THE SUBJECT OF AN ORDER BY THE U.S. SECURITIES AND EXCHANGE COMMISSION ("SEC") IN CONNECTION TO THE VIOLATION OF CERTAIN SECTIONS AND RULES UNDER THE INVESTMENT ADVISERS ACT OF 1940. WITHOUT ADMITTING OR DENYING THE FINDINGS IN THE ORDER, FUSION INVESTMENT ADVISORS CONSENTED TO THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 203(E) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER ("ORDER"). PURSUANT TO THE ORDER, FUSION INVESTMENT ADVISORS WILLFULLY VIOLATED A NUMBER OF REGULATIONS UNDER THE INVESTMENT ADVISERS ACT OF 1940. SPECIFICALLY, THE FIRM ACKNOWLEDGED THAT IT HAD MADE MISLEADING DISCLOSURES ABOUT A HARD DOLLAR ARRANGEMENT IN ITS ADV; HAD CHARGED FEES IN EXCESS OF THE DISCLOSED AMOUNTS; HAD FAILED TO RETAIN REQUIRED BOOKS AND RECORDS, INCLUDING CLIENT CORRESPONDENCE IT WAS REQUIRED TO RETAIN UNDER RULE 204-2(A)(7); AND HAD FAILED TO IMPLEMENT VARIOUS ASPECTS OF ITS COMPLIANCE POLICIES AND PROCEDURES. THE FIRM AGREED TO PAY DISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL MONETARY PENALTY TOTALING $258,466.35 AS FOLLOWS: (I) DISGORGEMENT OF $94,412.35 PLUS PREJUDGMENT INTEREST OF $14,054; AND (II) A CIVIL MONETARY PENALTY IN THE AMOUNT OF $150,000.