Huge, hidden fees
It’s all about the pay, some days. Amazing pay for the seller, but what sort of payoff for the investors.
The Securities and Exchange Commission yesterday announced a settlement with Regions Bank, over huge hidden fees and the activities of U.S. Pension Trust.
Regions acquired Union Planters in 2004. Union Planters began the bank's relationship with USPT in 2001.
Here’s what was happening, according to the SEC complaint:.
USPT managed to convince 14,000 investors, most of them living in Latin America, to invest $255 million into a collection of mutual funds. Trouble was, the organization didn’t disclose that it was taking as much as 85 percent of investors’ annual contributions in sales commissions and profits for itself. If instead you invested one lump sum, the charge was as much as 18 percent.
Regions agreed to a cease and desist order and will pay a $1 million penalty.




Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
How does a penalty less than one BILLION dollars get anyone else to cease and desist?
The penalties are just too small to do any good. Real jail time is what's needed.
Posted by: Mark Wolfinger | September 22, 2009 9:58 PM
I am glad I found such an useful blog. Great information here, thanks.
Posted by: abercrombie uk | February 12, 2012 5:59 AM
This was very informative. I have been reading your blog a lot over the past few days and it has earned a place in my bookmarks.
Posted by: jack wills wholesale | February 12, 2012 6:07 AM