SEC Charged River Source Wealth Management, LLC,


Washington D.C., May 28, 2019 —
The Securities and Exchange Commission today charged investment adviser Stephen Brandon Anderson with defrauding clients by overcharging advisory fees of at least $367,000.

According to the SEC’s order, Anderson owned and operated River Source Wealth Management, LLC, a now-defunct registered investment adviser in North Carolina. River Source’s primary revenue stream was customer advisory fees. Customer agreements provided that those fees would be based on each customer’s assets under management. The SEC’s order finds, however, that in 2015 and 2016, Anderson overcharged a majority of his clients.

The amount and percentages of the overcharges varied but, in the aggregate, amounted to approximately 40% more than the agreed-upon maximum customer advisory fees.

As described in the order, Anderson also misled his clients about the reason he transferred their assets from River Source’s long-time asset custodian, falsely stating that it was his decision and that the separation was “amicable.” In fact, as the order finds, the asset custodian ended the relationship with River Source after it noticed irregular billing practices and failed to receive sufficient supporting documentation from Anderson.

Furthermore, the order finds that Anderson made material misstatements in reports filed with the Commission, including overstating River Source’s assets under management by at least $34 million (18%) in 2015 and $61 million (35%) in 2016, and failed to implement required compliance policies and procedures.

The order prohibits Anderson from acting in a supervisory or compliance capacity or from charging advisory fees without supervision for at least three years, and requires Anderson to provide notice of the SEC order to clients and prospective clients.

“When advisors breach their duty to clients by misleading and overcharging them, they can expect the SEC will craft a package of remedies that will compensate harmed investors, provide additional safeguards for prospective investors, and deter similar conduct,” said Carolyn M. Welshhans, Associate Director in SEC’s Enforcement Division.

The SEC’s order finds that Anderson violated Sections 206(2) and 207 of the Investment Advisers Act, and aided and abetted and caused River Source’s violations of the books and records and compliance provisions of the Advisers Act. In addition to the limitations and undertakings discussed above, Anderson agreed to a cease-and-desist order and a censure, and agreed to pay disgorgement and prejudgment interest of $405,381 and a $100,000 penalty. Payments made by Anderson pursuant to the order will be distributed to harmed investors through a Fair Fund. Anderson consented to the order without admitting or denying the findings.

The SEC’s investigation was conducted by Brian Vann and Daniel A. Weinstein with assistance from James Smith, Samara Ross and Jonathan Swankie, and the case was supervised by Brian O. Quinn and Ms. Welshhans.

Mediation Services, Melinda Branscomb Contacting Consumers

Alert Number: CA050228_4/29/19(4/20)
Updated: 05/06/2019
Originally posted: 11/16/2017

The Washington State Department of Financial Institutions (DFI) has received multiple scamalert2complaints from Washington consumers of what appears to be debt a collection scam. Several consumers reported being contacted by entities alleging to be “Mediation Services” and “Mutual Mediations.” These entities claimed to be collecting debts owed for loans the consumers reported never occurred.

One consumer reported to receive threatening voicemails from Mediation Services. When the consumer called the number provided, the answering individual would not give the consumer any information about the source of the alleged debt. The consumer reported that several calls and voicemails were received.

Another consumer reported that someone claiming to represent Mediation Services had been leaving voicemails on the consumer’s personal phone. The caller identified himself as Kevin Reynold. The caller stated that he needed the consumer to contact him regarding a pending case against the consumer for an outstanding debt. The voicemail further stated that legal action would be taken if the debt was not paid immediately, and that the consumer would be waiving his rights if the consumer failed to respond.

One consumer reported being called by someone identifying himself as Brad Stevens from Mediation Services. The caller told the consumer he was collecting a debt owed for a payday loan, but refused to identify the name of the payday loan company. The caller claimed the consumer owed $700 for a payday loan taken out in 2010 that the consumer did not recognize. The consumer reported that the caller knew what bank the consumer used.

Another consumer reported being called multiple times by someone claiming to represent Mutual Mediations. The caller claimed the consumer owed $1,000 to National Group, LLC for a payday loan taken out in 2011 that the consumer did not recognize. The consumer reported the caller threatened that theft charges would be filed if the consumer did not enter into a payment plan.

These facts have been alleged by the consumers, and have not been verified by the Department.

The consumers reported the following contact information related to the calls:

Phone numbers:

  1. 253*244*9739
  2. 855*466*9581
  3. 859*402*0778
  4. 844*860*0904
  5. 253*244*9981

Names: Kevin Reynolds |Brad Stevens

The entities perpetrating the apparent scams are not licensed by the Department and are not registered to conduct business in Washington State by the Department of Licensing, the Department of Revenue, or the Secretary of State. The Department of Licensing licenses and regulates collection agencies under RCW 19.16.

Please note that the callers reported by the consumer should not be confused with the following businesses that are registered with the state:

  • Mediation Services, LLC – Bellingham, WA (Inactive)
  • Mediation Services, Melinda Branscomb – Vashon, WA

DFI warns Washington consumers:

Never send money or provide access to your bank or credit card in response to threatening telephone calls or emails you receive claiming that you owe a debt.
Never give any personal information, such as social security number, credit card, or bank account information to any individual, website, or company without first verifying their identity and license status.
Check that a financial services company or individual is properly licensed to conduct business in the state of Washington by using the “Verify a License” feature on the DFI’s website at
Check the license status of collection agencies with the State of Washington Department of Licensing at http://www.dol.wa.go

DFSA and an International Bank Impersonated

29 May 2019

The Dubai Financial Services Authority (DFSA) warns the financial services scamalert2community and members of the public of a scam in which the DFSA and an international bank were impersonated.

The scammers, using the DFSA logo, issued a fake “Stop Order” addressed to an international bank. The Stop Order stated that an incoming transfer of USD7.6 million was put on hold, because a “Covering Certificate” is required prior to the receipt of an international transfer. The Stop Order also stated that the Covering Certificate is mandated by the DFSA and can be obtained for a fee of 0.2% of the transfer amount. A copy of the fake Stop Order can be found here.

In addition, the scammers, using the logo of the same international bank referred to in the Stop Order, issued a fake “Payment Confirmation” regarding the transfer of USD7.6 million. A copy of the fake Payment Confirmation can be found here.

Both fake letters, being the Stop Order and Payment Confirmation, were sent to a member of the public who is listed as the beneficiary of the fictitious USD7.6 million transfer.

In an attempt to authenticate the scam, the perpetrators of the scam fraudulently used the following without permission:
• The name and logo of the DFSA;
• The name and purported signature of a royal family member on the Stop Order; and
• The name and logo of an international bank.

The DFSA is informing you that the Stop Order and Payment Confirmation are false documents which were not issued by the DFSA or the international bank respectively.

The DFSA informs you that it does not:
• Require a Covering Certificate for international transfers; or
• Charge a fee for international transfers.
The DFSA strongly advises you that you do not communicate with the perpetrators in relation to the scam, and under no circumstances should you send any money to them in connection with the scam.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers. For more information on these scams, please go to: HOW TO AVOID BEING SCAMMED

The DFSA encourages consumers to refer to the list of regulated Firms and Authorised Individuals licensed by the DFSA that is available on the DFSA’s PUBLIC REGISTER

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Dubai Financial Services Authority

Amana Financial Services (Dubai) Limited

Dear scamFRAUDalert,


The Dubai Financial Services Authority (DFSA) warns the financial services community and the public of a scam in which the scammers falsely claim to be an Authorised Firm, based in the Dubai International Financial Centre (DIFC) and regulated by the DFSA.

The scammers offer trading services to potential investors under the trading name “Amana Trade”. In doing so, the scammers have impersonated a legitimate DIFC incorporated and DFSA regulated Authorised Firm, namely, Amana Financial Services (Dubai) Limited, by:

• using the name “Amana Trade” which is similar to “Amana Financial Services (Dubai) Limited”; and
• falsely representing that it is a DFSA Authorised Firm.

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