The Texas State Securities Board suspended an investment advisor and ordered repayment of almost $47,000 in overcharges earlier this month.
According to a disciplinary order, Jens Pinkernell and his firm J. Pinkernell Global Wealth registered with the Texas securities commissioner in 2012 to provide investment advisory services in exchange for a management fee. Two of the firm's clients were allegedly overcharged over the next several years.
Client A agreed to pay an annual management fee of 1.35 percent of the client's investment assets managed by the firm. Fees were to be paid quarterly and in arrears. The client also had an advisory fee agreement with the firm and the third-party custodian that authorized the firm to withdraw fees of up to $3,000 a month from the client's account.
Over a five-month period, the firm withdrew $3,000 from the client's account that was not due or owed, the board said. The advisory firm withdrew a total of $19,133.70 from the client's account when actual fees owed amounted to only $1,850.73.
In a second case, Client B did not have an executed investment advisory contract with the firm so an annual asset management fee agreement was used that specified a fee of 2 percent of the client's assets to be paid monthly in arrears. The client had an advisory fee agreement with the firm and a third-party custodian that authorized withdrawal of fees of up to $8,000 per month.
From July 2013 to March 2016, the firm withdrew $38,436 from the client's account when actual fees due amounted to only $8,803.18.
The board said the firm's actions constitutes a fraud under the Texas Securities Act and it issued an immediate cease and desist order.
