Wyo. Secretary of State: Brokerage Firm Pays Settlement for ARS Violations

Wyoming Secretary of State Max Maxfield
Wyoming Secretary of State Max Maxfield

A media release from the office of Wyoming Secretary of State Max Maxfield on Monday stated that Wyoming has received a settlement from the brokerage firm Raymond James for misleading clients in auction rate security sales. Maxfield commented on the settlement.

In order to settle allegations that the firm misled Wyoming clients about the safety of auction rate securities, the release said, Raymond James is to complete or confirm its repurchase of ARS from all state clients.

For ARS violations, Raymond James was ordered to pay a $21,489 fine to the State of Wyoming, which represents Wyoming's pro-rata share of a $1.75 million settlement negotiated by the North American Securities Administrators Association, the release said.

The Wyoming Public School Fund receives all settlement and fines, as determined by the state constitution.

According to the release, nine different securities companies have settled with the Wyoming's Secretary of State's office for ARS violations that now total more than $1.2 million.

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