SEC Says Investment Adviser Charged $2.4 Million in Secret Fees

An investment adviser took $2.4 million in unauthorized fees from more than 220 client accounts at a brokerage firm, including by secretly logging in and approving them with contact information he controlled, the Securities and Exchange Commission said in a lawsuit filed Thursday.

Eliseo Jojo Prisno and his firm P/E Capital Investment Management Partners disclosed certain advisory fees, but they sometimes took advantage of the brokerage firm letting clients preauthorize quarterly invoicing at a capped dollar amount, said the SEC’s complaint filed in the US District Court for the Northern District of Illinois.

Chicago-based Prisno and P/E Capital provide management ...