A federal judge has ordered the former CEO of Brookstreet Securities Corp. to pay a maximum $10 million penalty in a securities fraud case related to the financial crisis. The CEO and Brookstreet were charged with fraud in December of 2009 for systematically selling risky mortgage-backed securities to customers with conservative investment goals.
“[The CEO’s] aggressive promotion and sale of risky mortgage products to seniors and other risk-averse investors deserves the maximum penalty possible, and that is what he got,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Those who direct such exploitative practices from the boardroom will be held personally accountable and face severe consequences for their egregious actions.”
Judge Orders Brookstreet CEO to Pay $10 Million Penalty in SEC Case