SEC Charges Brokerage Firm with Defrauding School Districts

Here’s hoping that the SEC’s action in this case makes a statement to those who seek to line their pockets with fat commissions by putting their clients’ assets at unsuitable risk.

Institutional investors are at as much risk from securities fraud as individual investors. In the speeches I give to institutional and individual investors and financial professionals, I often run a scrolling list of public pension funds that have been victimized by Ponzi and other scams. The list is just a small sample of funds defrauded in the past five years.  It takes more than two minutes to scroll through. A full list would take more than an hour to scroll through. This week, the SEC charged brokerage firm Stifel, Nicoluas & Co., Inc. with adding six more institutional investors to that list. According to the SEC’s press release: (more…)

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