ATLANTA (AP) - Charges have been filed against an Atlanta firm and two executives who are accused of selling unsuitable investments to Atlanta city employee pension funds.
The Securities and Exchange Commission said Thursday that Gray Financial Group, it’s President Laurence Gray and co-CEO Robert Hubbard are accused of fraud for knowingly directing pension fund clients to invest in alternative funds despite those investments against Georgia law.
Authorities say Gray Financial Group earned more than $1.7 million in fees from clients linked to the improper investments.
Attorney Terry Weiss said in an emailed statement that the SEC’s filing against the company and its executives are without merit. Weiss accused the SEC of bringing unconstitutional charges in an administrative proceeding rather than trying the case before an impartial judge and jury.
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