Citigroup Dinged $15 Million:
The NASD settled with Citigroup Global Markets to the tune of $15.2 million for charges related to misleading documents and inadequate disclosure stemming from retirement seminars and meetings with BellSouth employees. The total includes a $3 million fine and $12.2 million in restitution to more than 200 former BellSouth employees.
The regulator found Citigroup failed to adequately supervise a Charlotte, North Carolina team of brokers who held the seminars and meetings that misled many BellSouth employees about their retirement readiness. “The improperly supervised brokers in this case used misleading documents that made exaggerated and unwarranted projections of future earnings without fully explaining the risks involved,” said James Schorris, NASD head of enforcement.
Hilliard Lyons Fined:
NYSE Regulation fined J.J.B. Hilliard, W.L. Lyons (“Hilliard Lyons”) $1 million for its role in the sale of unregistered securities through a private placement that did not qualify for exemption under the federal securities laws. The firm was also cited for using offering documents that contained material misrepresentation and/or omissions of facts, unsuitable sales to public investors, and supervisory, record-keeping and other violations. “When soliciting the public's hard-earned dollars for private placements, firms must provide complete and accurate disclosure of the inherent risks,” said Susan Merrill, NYSE chief of enforcement, NYSE Regulation.