SEC v. Cutter Financial Group, LLC; and Jeffrey Cutter, No. LR-26485, District of Massachusetts (Feb. 19, 2026) — Press Release
raw: Cutter Financial Group, LLC and Jeffrey Cutter
Cutter Financial Group, LLC and Jeffrey Cutter, No. 3:23-cv-10589 (Feb. 19, 2026)
summary
Jeffrey Cutter and Cutter Financial Group LLC were ordered to pay civil penalties for breaching fiduciary duties by failing to disclose financial incentives when selling fixed index annuities.
paragraph
The U.S. District Court entered a final judgment against Jeffrey Cutter and Cutter Financial Group LLC for violating Section 206(2) of the Advisers Act. CFG was ordered to pay a $100,000 civil penalty, while Cutter must pay $50,000. The defendants are also enjoined from future violations for five years and must distribute the judgment to all current and new clients.
narrative
The SEC successfully litigated against investment adviser Jeffrey Cutter and his firm, Cutter Financial Group LLC, for breaching fiduciary duties. The defendants failed to adequately disclose financial incentives when recommending fixed index annuities over other investment options. Following a seven-day trial, a jury found the defendants liable for violating Section 206(2) of the Investment Advisers Act of 1940. The court ordered CFG to pay a $100,000 civil penalty and Cutter to pay $50,000. Additionally, both parties are enjoined from future violations for five years and must provide copies of the judgment to all existing and new clients for that duration. The litigation was managed by the SEC’s Boston Regional Office.
Classified investment-adviser-fraud(confidence 98%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Parties
Securities and Exchange CommissionCutter Financial Group, LLCJeffrey Cutter
Keywords
cuttercutter financialfinancial groupjeffrey cutterinvestmentadvisoryadvisory clientsfinancialcfggroupllcjeffreyadviserssecurities exchangefinal against
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $100K $100,000 $100K–$1M
- $50K $50,000 $10K–$100K
Entities 4
- person final judgment
- company jeffrey cutter and cutter financial group llc
- agency Securities and Exchange Commission
- court u.s. district court for the district of massachusetts
Triples 9
- U.S. Securities And Exchange Commission filed suit against Cutter Financial Group, LLC and Jeffrey Cutter
- U.S. District Court For The District Of Massachusetts entered final judgment against Jeffrey Cutter and Cutter Financial Group LLC
- Final Judgment orders Cutter Financial Group LLC to pay a civil penalty of $100,000
- Final Judgment orders Jeffrey Cutter to pay a civil penalty of $50,000
- Final Judgment requires Cutter and Cutter Financial Group LLC to provide a copy of the judgment to all existing and new investment advisory clients for five years
- Final Judgment enjoins Cutter and Cutter Financial Group LLC from future violations of Section 206(2) of the Investment Advisers Act of 1940 for five years
- Jury found liable Cutter and Cutter Financial Group LLC for violating Section 206(2) of the Advisers Act
- SEC alleged Cutter and Cutter Financial Group LLC violated Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-7 by selling fixed index annuities without adequate disclosure of financial incentives
- SEC handled litigation by Amy Burkart and David Fox of the Boston Regional Office
PDF (from attached: judgment)
Text layers
Extracted body text (1,836c)
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26485 / February 19, 2026Securities and Exchange Commission v. Cutter Financial Group, LLC and Jeffrey Cutter, No. 3:23-cv-10589 (D. Mass., filed Mar. 17, 2023)Court Enters Final Judgment Against Investment Adviser and Advisory Firm for Breaches of Fiduciary Duties in Annuity Sales to Advisory ClientsOn February 10, 2026, the U.S. District Court for the District of Massachusetts entered a final judgment against Massachusetts-based investment adviser Jeffrey Cutter and his advisory firm, Cutter Financial Group LLC (“CFG”). The judgment orders CFG to pay a civil penalty of $100,000 and orders Cutter to pay a civil penalty of $50,000. The judgment requires Cutter and CFG to provide a copy of the judgment to all of their existing investment advisory clients and to all of their new investment advisory clients for a period of five years, and enjoins Cutter and CFG from future violations of Section 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”) for a period of five years.The entry of the final judgment follows an April 23, 2025 jury verdict after a seven day trial on the SEC’s allegations that Cutter and CFG violated Sections 206(1), 206(2) and 206(4) of the Advisers Act and Rule 206(4)-7 thereunder by, among other things, selling insurance products called fixed index annuities to their advisory clients without adequate disclosure of their financial incentive to recommend fixed index annuities over other investment options. The jury found the defendants liable for violating Section 206(2) of the Advisers Act and found for the defendants on the SEC’s claims alleged under Sections 206(1) and 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.The SEC’s litigation was handled by Amy Burkart and David Fox of the Boston Regional Office.
OCR text (1,836c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26485 / February 19, 2026Securities and Exchange Commission v. Cutter Financial Group, LLC and Jeffrey Cutter, No. 3:23-cv-10589 (D. Mass., filed Mar. 17, 2023)Court Enters Final Judgment Against Investment Adviser and Advisory Firm for Breaches of Fiduciary Duties in Annuity Sales to Advisory ClientsOn February 10, 2026, the U.S. District Court for the District of Massachusetts entered a final judgment against Massachusetts-based investment adviser Jeffrey Cutter and his advisory firm, Cutter Financial Group LLC (“CFG”). The judgment orders CFG to pay a civil penalty of $100,000 and orders Cutter to pay a civil penalty of $50,000. The judgment requires Cutter and CFG to provide a copy of the judgment to all of their existing investment advisory clients and to all of their new investment advisory clients for a period of five years, and enjoins Cutter and CFG from future violations of Section 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”) for a period of five years.The entry of the final judgment follows an April 23, 2025 jury verdict after a seven day trial on the SEC’s allegations that Cutter and CFG violated Sections 206(1), 206(2) and 206(4) of the Advisers Act and Rule 206(4)-7 thereunder by, among other things, selling insurance products called fixed index annuities to their advisory clients without adequate disclosure of their financial incentive to recommend fixed index annuities over other investment options. The jury found the defendants liable for violating Section 206(2) of the Advisers Act and found for the defendants on the SEC’s claims alleged under Sections 206(1) and 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.The SEC’s litigation was handled by Amy Burkart and David Fox of the Boston Regional Office.