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Investment Fraud News: Regions Bank Pays $1 Million Settlement for Investment Fraud
The Securities and Exchange Commission (SEC) has brought complain against Regions
Bank for hidden fees associated with the Bank’s long-term investment fees. The Bank
has settled for $1 Million to compensate those investors harmed by the bank’s
misinformation and hidden fees.
Two long term investment plans offered by the Bank charged between 18 and 85% of
contributions to pad the plan’s profits and compensate their salespeople with hefty
commissions. The SEC charges that the Bank raised over $255 million through these
illicit charges.
The $1 Million settled by the SEC will be used to reimburse investors whose money
was used in a manner not properly disclosed at the time of investment. Regions Bank
is stopped accepting new investors into the long-term programs in January of 2008,
but the funds currently contain about $95 million from over eleven thousand
investors.
According to Glenn S. Gordon, associate director of the SEC’s Miami office,
“Regions Bank provided a false air of legitimacy to this scheme.” Regions Bank is
based in Birmingham Alabama and worked in conjunction with its predecessor, Union
Planters Bank, to establish to unregistered investment brokers. These brokers, U.S.
Pension Trust Corp and U.S. College Trust Corp, have a history of allegations from
the SEC.
You may have a legal case. Call or email us for a free consultation on your rights. The Hayes Law Firm at (713) 862-2152 or
dhayes@dhayeslaw.com.
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