The SEC is continuing to go after brokers who it claims have inappropriately sold B Class shares to investors. In its latest action it has put IFG Network Securities Inc., an Atlanta-based brokerage firm, in its sights, alleging that it failed to supervise its sales force.

ING Barrings has acquired IFG Network Securities since the 1998 to 2001 time period during which the SEC claims the sales practices took place. At that time, David Ledbetter, who was president of the company, failed to supervise three brokers at the firm, according to the SEC.

The SEC also alleges that the three brokers at the firm -- William I. Kissinger of Baltimore; Bert E. Miller of Houston; and Glenn F. Wilkinson of Wilmington, N.C. -- committed fraud through their recommendations. The SEC adds that the three recommended to at least 29 customers that they invest $250,000 or more in Class B shares within one mutual fund family rather than buy Class A shares.

An administrative law judge will hear the matter, although no date for the hearing has been set.

The SEC's Atlanta district office claims that shareholders would have saved both commissions and expenses if they had invested in Class A shares that offered breakpoints and lower monthly fees.  

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