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.

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