SEC Hits Regions Bank with $1 Million Fine

According to a complaint filed by the U.S. Securities and Exchange Commission (SEC), Regions Bank (Regions) played a significant role in a scam that robbed 14,000 investors of millions of dollars from 1996 to 2008.  Specifically, the SEC alleges that Regions served as trustee for mutual funds offered by two unregistered broker-dealers, U.S. Pension Trust Corp. and U.S. College [...]

According to a complaint filed by the U.S. Securities and Exchange Commission (SEC), Regions Bank (Regions) played a significant role in a scam that robbed 14,000 investors of millions of dollars from 1996 to 2008.  Specifically, the SEC alleges that Regions served as trustee for mutual funds offered by two unregistered broker-dealers, U.S. Pension Trust Corp. and U.S. College Trust Corp. (collectively USPT), and that Regions did not disclose that USPT deducted between 16 percent and 85 percent of investors initial investment in order to pay commissions to the salesmen who sold the mutual funds.  According to the SEC’s complaint:

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