Brown Secures Restitution Funds For Investors
James Brown, the Montana State auditor, commissioner of securities and insurance, announced that thousands of Montana investors will receive restitution totaling more than $160,000 after several national brokerage firms agreed to settle allegations that they charged unreasonable commissions on certain small principal equity transactions.
The transactions occurred between May of 2020 and the end of April of 2025. In the last month, Brown signed consent orders with Edward Jones, LPL Financial, and TD Ameritrade to resolve cases involving commissions on certain transactions that exceeded 5 percent of the principal trade amount. To wit: Edward Jones agreed to provide $67,601.53 in restitution to Montana investors for 4,922 transactions, pay a $100,000 administrative fine and reimburse the agency $25,000 in investigative costs. LPL Financial agreed to provide $16,711.73 in restitution to Montana investors for 857 transactions and a $25,000 fine. TD Ameritrade (which has been acquired by Charles Schwab) agreed to provide $2,634.09 in restitution to Montana investors for 176 transactions, along with a $15,000 fine and $35,000 in administrative and investigatory costs.
The agency is finalizing two additional consent agreements expected by year’s end. Stifel, Nicolaus & Company has agreed in principle to pay $7,174.42 in restitution to Montana investors for 382 transactions,a $20,000 fine, and $10,000 in investigative costs. RBC Capital Markets, LLC has agreed in principle to pay $67,570.69 in restitution for 1,707 transactions and a $25,000 fine. All totaled, Brown’s enforcement actions will bring the total restitution to Montana investors to more than $160,000. Total fines and costs recovered for the agency’s investigative efforts will amount to approximately $255,000.
“Montanans work hard for their money, and they deserve a fair deal every time they invest or make atrade,” Brown said. “When Montanans were charged excessive commissions oneveryday transactions, this office acted as the Treasure State’s watchdog, quickly stepped in, and got restitution back to harmed Montana investors.” “The diligence and hard work demonstrated by this office’s staff show we take our consumer protection role seriously,” said Brown.
The consent orders censure the firms for their actions and require the firms to review and improve their policies, procedures and supervision efforts relating to commissions on equity transactions to prevent similar overcharges in the future. The firms are responsible for directly notifying and providing restitution to affected Montana customers. In most cases, impacted Montana investors will not need to take any action to receive their funds. Further, the commissioner will receive a report detailing the restitution paid, which notice will include dates, amounts and methods of transfer of funds for all restitution payments. Brown encourages all investors to both review their account statements and trade confirmations and to contact the commissioner’s office if they believe they have been overcharged or misled. “Whether it’s a few hundred dollars or a few thousand, this office will stand up for Montana’s investors and hold firms accountable when they break the rules,” Brown said. “We will continue to aggressively police unreasonable fees and commissions and protect Montana families from financial harm.”
While this highlights CSI’s work for Montanans, it also illustrates how committed the office is to the issue of investor protection. Montana was one of the seven lead investigative states on this issue.
Montanans with questions about their investments or concerns about potential securities fraud or unfair fees are encouraged to contact the Office of the Montana State auditor, Commissioner of Securities and Insurance, at 406-440-2040 or visit the agency online at csimt.gov.
