Ex-Brookstreet CEO Ordered To Pay $10M In Fraud Suit

Law360, New York (March 2, 2012, 1:30 PM EST) -- A federal judge has ordered the former CEO of Brookstreet Securities Corp. to pay over $10 million in penalties for committing securities fraud by selling risky mortgage-backed securities to conservative investors, the U.S. Securities and Exchange Commission said Friday.

The $10 million fine, ordered by U.S. District Judge David O. Carter, is the maximum possible penalty against ex-CEO Stanley C. Brooks, whose program of selling risky, illiquid MBS to risk-averse investors led to his firm's collapse.

Judge Carter's judgment, which was entered Tuesday but announced Friday,...
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