Jeffrey Cutter, founder of Cutter Financial Group, has been found liable by a federal jury for breaching his fiduciary duty to clients—many of whom were retirees—by failing to disclose significant upfront commissions on annuity sales. The verdict, secured by the U.S. Securities and Exchange Commission (SEC), highlights the consequences of misleading financial advice and underscores the responsibility of investment advisors to be fully transparent with their clients.
If you or someone you know has been impacted by Jeffrey Cutter or another investment adviser in Massachusetts, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in financial advisor misconduct cases and will help to guide you through the process with a free consultation.
What the SEC Verdict Means For Cutter

The SEC charged Jeffrey Cutter (CRD#: 4733298) and his firm (CRD#: 290016) with violations of the Investment Advisers Act, specifically Section 206(2), which prohibits deceptive conduct by investment advisers. While the jury did not find Cutter liable for intentional fraud under Sections 206(1) and 206(4), it upheld the SEC’s claims that Cutter misled clients by failing to disclose the commissions he received.
Between 2014 and 2022, Cutter earned over $9.3 million in commissions from selling 580 fixed index annuities—without informing his clients about how much he was being paid. In many cases, those clients were unaware that these products came with steep surrender charges and were not necessarily aligned with their financial needs.
One notable example involved:
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A client who lost over $26,000 in surrender fees
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While Cutter earned a $23,857 commission on that same transaction—undisclosed at the time
The SEC has emphasized that this type of omission constitutes a breach of fiduciary duty. When an advisor is compensated in a way that could influence their recommendations, they have a legal obligation to disclose that conflict.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Key Takeaways for Clients Who Worked With Cutter
This case illustrates the risks of working with advisors who fail to fully disclose how they are compensated—especially when recommending complex or long-term products like annuities. Clients affected by these types of practices often don’t realize the harm until years later.
Here are key concerns raised by the SEC’s findings:
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Undisclosed commissions can create conflicts that lead to poor or inappropriate financial advice
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Clients of Cutter were not informed of potential surrender charges
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Cutter’s compensation ranged from 7–8% on annuity sales, often without disclosure
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Nearly $1 million in commissions came from annuity replacements, which often trigger added fees for investors
These practices reflect not just a lack of transparency—but a betrayal of trust. When financial advisors fail to disclose their incentives, investors are left vulnerable to advice that may prioritize the advisor’s gain over the client’s goals.
Meyer Wilson Helps Investors Who Have Suffered Losses
If you worked with Cutter Financial Group—or any advisor who recommended annuity products without clear, written disclosures about their compensation—you may have been misled.
To take action, you should:
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Collect account statements and advisor communications related to annuity purchases
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Review whether you were told about commissions or surrender charges
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Consider legal support to help assess your case and pursue recovery through arbitration or legal claims
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Stay informed about further SEC or regulatory actions that may affect your eligibility for compensation
Remember: it was your advisor’s responsibility to act in your best interest—not yours to uncover hidden fees or incentives. If you or someone you know has suffered losses due to the actions of investment advisers like Jeffrey Cutter, the experienced attorneys at Meyer Wilson are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions


What fiduciary duties do financial advisors owe their clients?
Advisors must act in the best interests of their clients, avoiding or disclosing conflicts of interest and prioritizing client goals over personal financial gain.
What were the consequences of Cutter’s actions?
He was found liable for deceptive practices under Section 206(2) of the Investment Advisers Act. The verdict did not find him guilty of intentional fraud, but still confirms misconduct.
What is a fixed index annuity, and why is disclosure important?
These are long-term investment products that can come with surrender charges and high commissions. Without full disclosure, clients may be unaware of the risks or advisor incentives.
Recovering Losses Caused by Investment Misconduct.