This case involves fees paid to an investment adviser by mutual funds. The defendant, a wealth management fund, was a registered investment adviser and advised clients on which mutual funds to invest in. Typically, investment advisers are paid by clients with fees which are determined by the growth or decrease of the client’s assets. In addition to this fee arrangement, however, the defendant was also receiving money from mutual funds (in some cases, as high as .5% of the assets that the client put into the mutual funds) when the adviser had a client invest in that mutual fund. Additionally, the adviser did not disclose this information to his clients. When investors discovered this payment arrangement, they brought suit against the defendant, alleging that the adviser broke his fiduciary duties.