Investigators ultimately unearthed “fraudulent and unethical” practices, including excessive trading in client accounts - resulting in commissions totaling 28 percent of the $877,493 invested by clients in Montana, according to the regulator’s report.
The firm settled with the state on April 18, agreeing to pay $30,000 in restitution to clients without admitting wrongdoing.
During the call that got the firm into trouble, Sullivan pitched Navarro on an investment in Paypal stock, the report said. After Navarro informed Sullivan that he worked for the state’s securities regulator, Sullivan blurted out “Happy New Year!” and hung up.
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This article was provided by Reuters.