Monday, May 29, 2023 | Back issues
Courthouse News Service Courthouse News Service

Brokers Settle With SEC for $45 Million

MANHATTAN (CN) - Value Line, a New York-based investment adviser, and two of its top executives will pay $45 million to settle complaints the company took $24 million in bogus commissions on mutual funds trades it funneled through its own broker-dealer, Value Line Securities, the SEC said.

Value Line, its CEO Jean Buttner and its former Chief Compliance Officer David Henigson agreed to pay $45 million, though they don't admit they did anything wrong.

But the SEC's enforcement director said in announcing the settlement: "Value Line misappropriated millions of dollars from the mutual funds they managed by artificially allocating fund trades and then charging the funds for phantom brokerage services."

Value Line will disgorge $24.2 million plus $9.6 million in interest, and a $10 million penalty. Butner will pay a $1 million fine, and Henigson $250,000.

Read the Top 8

Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.