Raymond James Settles Compliance Failure Case For $5.95M

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Raymond James Settles Compliance Failure Case For $5.95M

Raymond James Financial Inc. has agreed to settle a compliance failure case with Vermont’s Department of Financial Regulation for $5.95 million. The alleged compliance failure pertained to real-estate development projects at ski resort Jay Peak.

According to Vermont’s Commissioner Susan Donegan, Raymond James will pay $4.5 million to a federal receiver who will return money to foreign investors who funded the projects through a green card program. The firm will additionally pay $1.25 million to Vermont’s general fund and $200,000 to reimburse the state regulator for the cost of its investigation.

The SEC had announced fraud charges and an asset freeze against Jay Peak and related businesses in April for the alleged misappropriation of millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program, which was created in 1990 to give green cards to foreign residents who invest at least $1 million in an American company that creates jobs for American workers. In this case and for other high-unemployment or rural areas the amount is only $500,000.

“Since the SEC’s seizure of the Jay Peak-related EB-5 projects, investors have been rightly concerned about possible recovery of funds,” said Donegan. “This settlement contributes to their restitution.”

“We are pleased to have reached this settlement with the state of Vermont,” Steve Hollister, Director of Public Communications at Raymond James said. “Raymond James has a sustained history of conservative, long-term focused management with an emphasis on putting clients’ interests first, and we are committed to ensuring policies and procedures protect clients.”

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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