In 2008, the Minnesota Department of Commerce and other state securities regulators began receiving complaints from investors about their inability to sell their auction-rate securities, securities sold to them as short-term, liquid investments. As a result, the North American Securities Administrators Association formed a multistate Task Force to investigate whether certain firms who sold auction-rate securities had systematically misled investors.
The work of the Task Force and other state securities regulators led to settlements requiring some firms to repurchase from certain investors more than $61 billion in auction-rate securities, the largest return of funds to investors in history.
The settlements entered into by the Minnesota Department of Commerce and firms selling auction-rate securities to Minnesota investors are available at the links below. In addition, Minnesota has collected more than $7,000,000 in civil penalties from these firms. Additional information and future settlements will be posted to this page. You can access the public documents related to these settlements by using
CARDS.
Search by company name.
They are listed here in alphabetical order:
BANC OF AMERICA SECURITIES LLC Lic#
Action: Other/Consent
Signed Date: 7/24/2009
File # 12180 Inv: DK Penalty: $644,316
Allegation:
GLOBAL SETTLEMENT OF AUCTION RATE SECURITIES INVESTIGATION ALLEGING RESPONDENT FAILED TO SUPERVISE AGENTS AND ENGAGED IN DISHONEST AND UNETHICAL PRACTICES
CITIGROUP GLOBAL MARKETS INC. Lic#
Action: Other/Consent
Signed Date: 6/18/2009
File # 11232 Inv: DK Penalty: $588,792
Allegation:
Global settlement of auction rate securities investigation alleging Respondent failed to supervise agents and engaged in dishonest and unethical practices.
CREDIT SUISSE SECURITIES (USA) LLC
Against: Broker-Dealer Location: NEW YORK, NY
Action: Other/Consent
Signed Date: 2/26/2010
File # 13849 Inv: DK Penalty: $290,901
Allegation:
Auction rate securities global settlement resulting from failure to supervise agents and engaged in dishonest and unethical practices.
DEUTSCHE BANK SECURITIES INC
Against: Broker-Dealer Location: NEW YORK, NY
Action: Other/Consent
Signed Date: 12/1/2009
File # 13257 Inv: DK Penalty: $534,460
Allegation:
Auction rate securities global settlement resulting from failure to supervise and engaging in dishonest and unethical practices.
E*TRADE SECURITIES LLC
Action: Other/Consent
Signed Date: 04/27/2012
File # 17304 Inv: DK Penalty: $60,465.68
Allegation:
GLOBAL SETTLEMENT OF AUCTION RATE SECURITIES INVESTIGATION ALLEGING RESPONDENT FAILED TO SUPERVISE AGENTS AND ENGAGED IN DISHONEST AND UNETHICAL PRACTICES
J P MORGAN CHASE & CO
Against: Broker-Dealer Location: JERSEY CITY, NJ
Action: Other/Consent
Signed Date: 3/4/2010
File # 13258 Inv: DK Penalty: $226,222
Allegation:
Auction rate securities global settlement resulting from failure to supervise agents and engaged in dishonest and unethical practices.
MERRILL LYNCH PIERCE FENNER & SMITH INCORPORATED
Against: Broker-Dealer Location: CHARLOTTE, NC
Action: Other/Consent
Signed Date: 9/9/2009
File # 13255 Inv: DK Penalty: $5,574,972
Allegation:
Global settlement of auction rate securities investigation alleging Respondents failed to supervise agents and engaged in dishonest and unethical practices.
MORGAN STANLEY & CO. INCORPORATED
Against: Broker-Dealer Location: BALTIMORE, MD
Action: Other/Consent
Signed Date: 5/6/2010
File # 16092 Inv: DK Penalty: $369,026
Allegation:
Auction Rate Securities global settlement resulting from failure to supervise agents and engaged in dishonest and unethical practices.
RBC CAPITAL MARKETS CORPORATION
Against: Broker-Dealer Location: NEW YORK, NY
Action: Other/Consent
Signed Date: 1/14/2010
File # 12746 Inv: DK Penalty: $563,251
Allegation:
Auction rate securities global settlement resulting from Respondent's failure to supervise agents and engaged in dishonest and unethical practices.
TD AMERITRADE, INC.
Against: Broker-Dealer Location: BELLEVUE, NE
Action: Other/Consent
Signed Date: 5/19/2010
File # 13747 Inv: DK
Allegation:
Auction Rate securities global settlement in which respondent made untrue statements or omitted material facts.
WACHOVIA SECURITIES LLC Lic# 20410759
Against: BD Location: RICHMOND, VA
Action: Other/Consent
Signed Date: 5/11/2009
File # 11200 Inv: DK Penalty: $387,791
Allegation:
Global settlement of auction rate securities investigation alleging Respondents failed to supervise agents and engaged in dishonest and unethical practices. Order covered both entities.