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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Case Information

Case Title

Securities and Exchange Commission v. Brookstreet Securities Corp et al

Case Number



California Central

Nature of Suit



David O. Carter

Date Filed

December 8, 2009

Government Agencies

UK Financial Services

UK Financial Services

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