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Stifel, ex-executive settle SEC case over Wisconsin school investments
Source: Reuters
U.S. | Thu Dec 8, 2016 | 11:05am EST
Stifel, ex-executive settle SEC case over Wisconsin school investments
By Nate Raymond
Stifel Financial Corp's brokerage unit and an ex-executive have agreed to pay $24.6 million to resolve claims arising from the sale of risky investment products to five Wisconsin school districts ahead of the financial crisis of 2008.
The U.S. Securities and Exchange Commission announced the deal on Thursday. As part of the settlement, St. Louis-based Stifel, Nicolaus & Co and David Noack, a former senior vice president, agreed to admit to wrongdoing, the SEC said.
Under the settlement, Stifel and Noack agreed to jointly forfeit $1.66 million and pay $840,000 in prejudgment interest. Stifel and Noack also agreed to pay penalties of $22 million and $100,000, according to court documents.
The final settlement came after a tentative accord was reached in September on the eve of trial in the 2011 lawsuit. Of the $24.6 million that will be paid, the five school districts will receive $12.5 million, according to court papers.
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The SEC sued Stifel and Noack in 2011, saying they misled five Wisconsin school districts about the risks of investing in synthetic collateralized debt obligations.
[font size=1]-snip-[/font]
Stifel, ex-executive settle SEC case over Wisconsin school investments
By Nate Raymond
Stifel Financial Corp's brokerage unit and an ex-executive have agreed to pay $24.6 million to resolve claims arising from the sale of risky investment products to five Wisconsin school districts ahead of the financial crisis of 2008.
The U.S. Securities and Exchange Commission announced the deal on Thursday. As part of the settlement, St. Louis-based Stifel, Nicolaus & Co and David Noack, a former senior vice president, agreed to admit to wrongdoing, the SEC said.
Under the settlement, Stifel and Noack agreed to jointly forfeit $1.66 million and pay $840,000 in prejudgment interest. Stifel and Noack also agreed to pay penalties of $22 million and $100,000, according to court documents.
The final settlement came after a tentative accord was reached in September on the eve of trial in the 2011 lawsuit. Of the $24.6 million that will be paid, the five school districts will receive $12.5 million, according to court papers.
[font size=1]-snip-[/font]
The SEC sued Stifel and Noack in 2011, saying they misled five Wisconsin school districts about the risks of investing in synthetic collateralized debt obligations.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/us-stifel-financial-wisconsin-sec-idUSKBN13X1P9