Falmouth Investment Adviser to Face Court Case in April
A trial involving Falmouth investment adviser Jeffrey T. Cutter has been scheduled to take place next month in the US District Court of Massachusetts in Boston, and it will be overseen by Judge Denise J. Casper. The trial, set to commence on April 14, stems from a legal complaint lodged by the US Securities and Exchange Commission against Mr. Cutter on March 17, 2023. Central to the commission’s allegations are claims that he failed to adequately disclose the commissions he received from products he sold to clients, coupled with accusations of making false statements on the applications for those products.
The complaint contends that Mr. Cutter profited significantly from undisclosed commissions garnered from the sale of annuities. Specifically, the commission asserts that between 2014 and 2022, Mr. Cutter accrued at least $9,340,302 in commissions from the sale of 580 annuities to his clientele. Moreover, the commission maintains that upon onboarding clients at Cutter Financial Group, Mr. Cutter promptly transitioned them into annuity contracts, urging them to “replace” or “switch” annuity contracts wherever feasible. By doing so, he could obtain a further 7 to 8 percent annuity commission from the acquisition of these replacement annuities.
Furthermore, the SEC alleges that Mr. Cutter neglected to inform his clients about the commissions he received from annuity sales, and he also purportedly misrepresented his clients’ financial standings to insurance companies on applications for these products. The Securities and Exchange Commission, functioning as a US government agency, serves to regulate the securities industry with the overarching goals of safeguarding investors, fostering fair and effective markets, and mitigating fraudulent activities.
In December 2023, Judge Casper rebuffed a motion submitted by Mr. Cutter’s defense attorney, Ian Ro. The denial of the motion keeps the case on track for trial. As the proceedings set to unfold in April, Mr. Cutter’s legal team will engage in a vigorous defense against the charges leveled against him. As the trial date approaches, the eyes of observers within the industry remain fixed upon the proceedings, eagerly awaiting the adjudication of this high-profile case that has generated substantial interest in the financial sector.
