Chicago, IL – Investors in Illinois have reason to celebrate as Secretary of State Alexi Giannoulias announced this week a $12.4 million settlement with financial giants, Raymond James & Associates, Inc. and Raymond James Financial Services, Inc.
The settlement follows a joint investigation by Illinois and five other states, accusing the company of unfair practices of charging excessive commissions on trades, adversely affecting main street investors, including many in Illinois. The settlement will require Raymond James to refund a significant $8.2 million to clients nationwide, providing much-needed relief to affected investors. The company will also face penalties and costs amounting to $4.2 million.
Secretary Giannoulias emphasized the importance of protecting investors, stating, “This case will ensure that investors are treated fairly by broker-dealers and financial services firms.”
Illinois investors will receive $328,000 in restitution, demonstrating the state’s commitment to seeking justice for its citizens. The investigation revealed shocking details, exposing excessive commissions on over 270,000 low-principal amount equity transactions nationwide.
In response, Raymond James has committed to enhancing its policies to ensure fair and reasonable commissions, with a review planned one year after implementation.
