Advance Capital Management

On April 7, 2025, the Securities and Exchange Commission issued a cease-and-desist order against Advance Capital Management, Inc., a Michigan-based registered investment adviser, for providing false information in regulatory filings and failing to distribute settlement proceeds to former fund shareholders.

According to the SEC, in 2016, Advance Capital Management began liquidating its affiliated investment company, Advance Capital I, Inc. (ACI), and filed a Form N-8F to deregister the fund. In doing so, the firm failed to disclose that ACI had pending class action claims that could result in financial recoveries for shareholders. As the liquidation proceeded, Advance Capital Management redeemed shareholder interests without informing them of these claims or compensating them for any potential settlements.

Following the deregistration, the firm continued to receive proceeds from class action settlements related to ACI’s former holdings. Instead of distributing those funds to the fund’s former shareholders, Advance Capital Management retained the money—amounting to hundreds of thousands of dollars—to offset its own expenses from closing the fund.

The SEC found that these actions caused ACI to violate Section 34(b) of the Investment Company Act by submitting materially misleading information. As part of the settlement, Advance Capital Management agreed to pay $599,953 in disgorgement, interest, and penalties, which will be distributed through a Fair Fund to financially harmed former shareholders.

If you were an investor in Advance Capital I, Inc. or one of its fund series, you may be entitled to recovery. Contact ChapmanAlbin today. Our firm represents investors nationwide in cases involving investment adviser misconduct and regulatory violations.

Call (877) 410-8172 or visit www.chapmanalbin.com to schedule a free consultation.