Investment Advisers Ordered to Pay $2 Million Over Fee Scheme

Ambassador Advisors LLC and three of its executives must pay about $2 million in disgorgement, interest, and penalties to the SEC for engaging in a scheme to pocket excess mutual fund fees, a federal court in Pennsylvania ruled.

The Lancaster, Pa.-based firm will also have to take down statements on its website that it acted in good faith, and must “deliver a clarifying notice” to its clients, Judge John M. Gallagher said Wednesday for the US District Court for the Eastern District of Pennsylvania.

But the advisers won’t be formally barred from repeating the violations through the mechanism of a ...