The U.S. Securities and Exchange Commission (SEC) has filed a civil lawsuit against New Line Capital, LLC and its founder David Nagler, alleging multiple violations of fiduciary duty and fraudulent billing practices.

Filed in New Mexico District Court, the complaint accuses Nagler and New Line of overcharging clients for advisory and consulting services without proper disclosure or consent between 2019 and 2024.

According to the SEC, the firm:

• Collected excessive annual advisory fees beyond what was contractually agreed
  
  
• Charged clients for “consulting” services they never authorized
  
  
• Failed to disclose material conflicts of interest, breaching their fiduciary duties
  
  

The SEC has requested:

• Permanent injunctions barring future violations
  
  
• A mandate requiring quarterly fee invoices to clients
  
  
• Full disgorgement of ill-gotten gains plus civil penalties
  
  

The case highlights the importance of transparency and disclosure in all client-adviser relationships — something retail investors and traders should never overlook.

As the advisory space grows more crowded—and lines between “education,” “advice,” and “funding” blur—regulators are showing they’re willing to crack down.

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