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.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s