Compensation for Montana investors following broker-dealer agreements

Montana Investors to Receive $160,000 in Compensation

More than $160,000 will be distributed to investors in Montana as part of a settlement reached by several state-run brokerages regarding unfair commissions on small stock trades, announced the state’s commissioner of securities and insurance on Monday.

This settlement pertains to transactions from May 2020 to April 2025 and includes five intermediary firms, with expectations for further agreements in the future.

Edward Jones, LPL Financial, and TD Ameritrade (now part of Charles Schwab) have consented to orders that require them to reimburse Montana investors a total of about $86,947.75. This will cover restitution, penalties, and investigation costs linked to thousands of trades. Specifically, Edward Jones will pay around $67,601.53 in restitution, a $100,000 administrative penalty, and $25,000 for investigation costs related to 4,922 transactions. LPL Financial’s contribution is $16,711.73 in restitution and a $25,000 penalty for 857 transactions. TD Ameritrade will provide $2,634.09 for 176 transactions, along with $15,000 in fines and $35,000 in investigation costs.

There are also two preliminary agreements with Stifel, Nicolaus & Company and RBC Capital Markets, LLC, where both firms are proposing to pay restitution and penalties as part of an ongoing multi-state investigation. Stifel expects to disburse around $7,174.42 for 382 transactions, a fine of $20,000, and $10,000 in investigation costs. RBC anticipates paying about $67,570.69 along with a $25,000 fine for 1,707 transactions.

In total, the settlement will result in damages exceeding $160,000, along with approximately $255,000 in fines and costs associated with the state’s investigation. The commissioner highlighted the action’s intent to safeguard Montana investors from excessive fees on everyday transactions and to ensure brokerages adjust their policies accordingly.

“Because of this action, Montanans have paid too much for services,” said Montana State Comptroller James Brown, noting that the aim is to reduce the economic impact on many investors in the state.

The agreements mandate that brokerages inform affected customers and compensate investors directly, often requiring no action from the investors themselves. The Commissioner’s Office plans to release a report detailing the compensation process, including dates, amounts, and how reimbursement will occur.

Brown encouraged investors to examine their financial statements and trade confirmations and to report any concerns of overcharging or incorrect statements to state authorities. The release underlined that the agency’s consumer protection mission includes oversight of both insurance and securities companies, with Montana serving as a leading investigative partner for several states.

This multi-state initiative marks the beginning of a broader investigation, with further settlements and actions against other securities firms anticipated in 2026. Brown also mentioned ongoing prosecutions related to other financial fraud cases, such as virtual currency schemes and Ponzi operations.

“We have a list of affected Montanans, which is quite substantial, and we plan to ensure they receive the refunds due to them,” Brown noted.

If investors have questions, they can reach out to the Montana Office of the Comptroller, Securities and Insurance Commissioner at 406-440-2040 or visit csimt.gov for more information.