CHICAGO FIRM SETTLES ENFORCEMENT ACTION INVOLVING SALE OF UNREGISTERED SECURITIES IN MONTANA
Company ordered to return commissions to Montana investors; Pay fine to state
Montana State Auditor John Morrison has entered into a settlement with Chicago-based broker-dealer firm Rothschild Investment Corp. In a previously filed action, the Securities Department of the Auditor’s Office alleged the firm, as well as a number of brokers, had transacted securities business with at least 11 investors in the Missoula and Kalispell areas over the past two years without being properly registered in Montana.
“Montana’s citizens should be able to feel their investments are safe and the securities business they are transacting is with a reputable, licensed firm.” said Morrison. “My office will take appropriate action to ensure firms and brokers do not benefit from doing business with Montana citizens without first complying with the law.”
Under the terms of the consent agreement, Rothschild Investment Corp. agreed to return $22,741.65 in commissions to the 11 Montana investors, pay a $2,500 fine to the State of Montana and contribute $2,500 to the Investor Protection Trust for the benefit of Montana investors. The firm and brokers are now properly licensed to do business in Montana.
The Investor Protection Trust provides independent, objective information needed by consumers to make informed investment decisions. Founded in 1993 as part of a multi-state settlement to resolve charges of misconduct, IPT serves as an independent source of non-commercial investor education materials. IPT operates programs under its own auspices and uses grants to underwrite important initiatives carried out by other organizations. The IPT recently provided the Montana State Auditor’s Office with a grant to develop an investor education documentary entitled “Fraud Under the Big Sky.” To learn to protect yourself from securities fraud, you can order a free copy of this DVD by calling (800) 332-6148.