HARTFORD, Conn. (AP) – The global securities firm RBS Securities has agreed to pay $44 million to settle fraudulent trading complaints.
U.S. Attorney for Connecticut Deirdre Daly said Thursday that employees at the Stamford-based division of the Royal Bank of Scotland knowingly defrauded
customers _ some of whom were beneficiaries of the federal Troubled Asset Relief Program _ from 2008 to 2013 in order to boost the company’s fortunes.
Daly’s office says in some instances, RBS employees lied to buyers of mortgage-backed securities and collateralized loan obligations about a seller’s
asking price and pocketed the difference. In other instances, they charged buyers unearned commission fees.
The company has agreed to pay a $35 million penalty and more than $9 million in restitution. But the non-prosecution agreement only addresses the company’s
Individual criminal investigations remain open.
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