First Command Financial Services Fined $12 Million for Misleading Investors

First Command Financial Services is paying $12 million to settle charges that the NASD and SEC had brought against it for selling military families mutual funds while not disclosing the high cost - as much as 50% of an investor's first-year contributions - and the fact that cheaper investment alternatives were available. The sales in question had occurred over the last five years.

The settlement requires First Command to reimburse investors any amounts over what would have been a more legitimate 5% sales charge.

Source: New York Times, December 16, 2004