Edward Jones Fines $20M for Municipal Bond Overcharges

Posted on August 28th, 2015 at 12:02 PM
Edward Jones Fines $20M for Municipal Bond Overcharges

From the Desk of Jim Eccleston at Eccleston Law LLC: 

The SEC has ordered Missouri based brokerage firm Edward Jones to pay $20 million as a fine for overcharging retail customers in new municipal bond sales.

According to the SEC, Edward Jones and Stina Wishman, its former head of municipal syndicate desk failed to sell new bonds to customers at the "initial offering price”. Instead, the firm placed the new issue bonds into its own inventory and then improperly sold them to customers at higher prices. The SEC calculated that customers paid at least $4.6 million more than they should have paid.

The overcharges occurred through the offer and sale of about 156 different bonds in 75 negotiated offerings in which Edward Jones served as a co-manager.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, SEC, Securities Exchange Commission,

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

October 9, 2024
Charles Schwab Faces Lawsuit Over Failure to Prevent Elder Fraud in Computer Hack

A new lawsuit claims that Charles Schwab failed to protect an elderly client from a fraudulent scheme that drained her retirement savings.

October 8, 2024
Western International Securities Fined Over $1.5 Million for Failing to Detect Churning

Western International Securities, a California broker-dealer, has been ordered to pay over $1.5 million for failing to detect churning in 100 customer accounts.

October 7, 2024
SEC Enforcement Chief Gurbir Grewal to Step Down After Leading Major Crackdowns

Gurbir Grewal, Director of Enforcement at the U.S. Securities and Exchange Commission (SEC), is stepping down after playing a central role in major enforcement actions against Wall Street and the cryptocurrency industry.