Thursday, Jun 30, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Business

Broker sued for fraud after schools lose $200M

WASHINGTON — Federal regulators are accusing brokerage firm Stifel Nicolaus & Co. of civil fraud in its sales of risky complex investments to five Wisconsin school districts that lost all of the $200 million they invested.

The Securities and Exchange Commission announced the lawsuit Wednesday against Stifel Nicolaus of St. Louis and former senior vice president David Noack. The SEC said they misled school districts officials by telling them the investments made in 2006, which ended up failing, were safe. The investments were linked to default insurance protection on corporate bonds. The school districts’ credit ratings were downgraded as a result.

Stifel Financial Corp., the brokerage firm’s parent, disputed the SEC’s charges and said it will contest them in court. In its suit filed in federal court in Milwaukee, the SEC is seeking unspecified restitution and fines against Stifel Nicolaus and Mr. Noack.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…