State Auditor Reaches $500,000 Settlement with Financial Company
When financial companies turn out to be bad actors and swindle Montanans out of their hard earned money, the State Auditor’s office steps in to resolve the matter, as Matt Rosendale did with a financial company out of Boston.
Spokesman Kyle Schmauch explains how Rosendale intervened on behalf of Montana investors with LPL Financial.
“Our office along with others around the country reached a major settlement with a financial company based out of Boston,” said Schmauch. “Montana’s portion of that settlement is about $500,000, as a result of that company violating what are called ‘blue sky’ laws, designed to protect investors from fraud, make sure there’s proper information given to investors about the companies.”
Schmauch provided specific numbers from the settlement.
“The settlement includes a $300,000 fine and also a $199,000 to the securities restitution fund that pays victims when they can’t collect from the investment firm at fault,” he said. “In this case we have very good news that every Montanans who was impacted by this company’s actions will be given their money back with three percent interest per year,” he said. “That could be substantial because some of the investors have been involved with the firm for over 10 years.”
The settlement comes after a multi-state investigation by the North American Securities Administrators Association (NASAA) revealed that LPL Financial had violated “Blue Sky” laws. Blue Sky laws are state regulations that provide safeguards to protect investors from securities fraud. Montana is a member of NASAA through Rosendale’s office.