Jury Clears Cutter Financial Group of Intentional Fraud and Finds It Adopted and Implemented Adequate Compliance Policies and Procedures
Falmouth, MA — April 23, 2025 — Cutter Financial Group LLC (CFG) today issued a formal response to the jury verdict in its civil litigation with the U.S. Securities and Exchange Commission (SEC). The jury found that CFG and Jeffrey Cutter did not engage in any intentional fraudulent scheme and found that CFG adopted and implemented reasonable compliance policies and procedures. While CFG disclosed that it received commissions from insurance companies, the jury found CFG negligent in not also disclosing the specific amount of those commissions for a limited number of clients. The SEC did not argue that any client funds were lost or that any recommendation was unsuitable for clients.
“Today, the jury found what we have been saying for more than four years: that we did not intentionally or recklessly defraud any clients,” said Jeffrey Cutter, President and Founder of CFG. “The jury also found no violations of applicable SEC rules about compliance policies and procedures. These are claims that should never have been brought in the first place. It is very difficult for a small business to stand up to federal government regulators and prevail. But that’s what we did today.”
The SEC’s case focused on disclosures related to commission compensation structures. There were no allegations that client funds were misappropriated. CFG acknowledges that industry-based financial advisory disclosures can be complex. To help clients better navigate these structures, the firm will be launching educational and compliance initiatives, including an educational campaign to explain compensation structures in accessible terms.
“We believe the entire industry can benefit from clearer standards and simpler language,” said Jen Farrington, Ph.D., Investment Advisor Representative and Chief Compliance Officer. “We’re committed to leading that conversation—not just for our clients, but for the profession as a whole.”
With many years of trusted service, CFG remains focused on helping individuals and families make well-informed financial decisions with professionalism and care.
About Cutter Financial Group
Cutter Financial Group LLC is a financial advisory firm based in Falmouth, MA, providing retirement planning and investment advisory services. CFG is committed to clear, ethical, and client-first planning processes. Cutter Financial Group is a registered investment adviser. Insurance products and services are offered through its affiliate, Cutterinsure, Inc.
Cutter Financial Group LLC is a financial advisory firm based in Falmouth, MA, providing retirement planning and investment advisory services. CFG is committed to clear, ethical, and client-first planning processes. Cutter Financial Group is a registered investment adviser. Insurance products and services are offered through its affiliate, Cutterinsure, Inc.
Visit CutterFinancialGroup.com for more information about Cutter Financial Group.
