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.
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