Stifel Fined $1M Over Lax Oversight Of Convicted Broker

Law360, New York (January 25, 2012, 8:25 PM ET) -- Stifel Financial Corp. unit Stifel Nicolaus & Co. Inc. will pay $1.1 million to settle allegations made by Missouri securities regulators that the brokerage failed to adequately supervise a stockbroker convicted of defrauding investors through a real estate investment scheme, state authorities said Wednesday.

Missouri regulators claim that St. Louis-based Stifel failed to detect questionable activities carried out by stockbroker Kenneth Neely, who worked at the firm from 2002 to 2007 and allegedly sold shares in a fraudulent real estate investment trust to investors in Missouri...
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