Defendant Name:
Regions Bank
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Regions Financial Corporation
SIC Code:
6021
CUSIP:
7591EP10
Initial Case Details
Legal Case Name
SEC v. Regions Bank
First Document Date
21-Sep-2009
Initial Filing Format
Civil Proceeding
Case Number
09-cv-22821
Allegation Type
Securities Offering
Federal District Court
Florida, Southern District of Florida
Related Violations Alleged
Regions Bank is alleged to have aided and abetted U.S. College Trust Corp.'s violation of Section 15(a)(1) Exchange Act.
Regions Bank is alleged to have aided and abetted U.S. Pension Trust Corp.'s violation of Section 15(a)(1) Exchange Act.
Resolutions
First Resolution Date
21-Sep-2009
Headline Total Penalty and Disgorgement
$1,000,001
Related Documents:
Complaint
In the Complaint, the SEC stated: "This case involves the role of a United States-based bank as trustee of an investment plan through which unregistered broker-dealers, U.S. Pension Trust Corp. and U.S. College Trust Corp. (collectively, 'USPT') defrauded approximately 14,000 investors by charging exorbitant, undisclosed commissions and fees in connection with the sale of mutual funds. Using a network of approximately 2,000 unregistered sales agents, USPT offers and sells to investors residing primarily in Latin America mutual funds available from well-known U.S. fund companies, through a trust created at a U.S. bank. Until March 2006, USPT did not disclose to new investors that it took up to 85% of investors' annual contributions, and as much as 18% of investors' lump-sum contributions, to pay exorbitant sales commissions to sales agents and a profits to itself."
SEC Files Settled Civil Action against Regions Bank in Which Regions Agrees to Pay $1 Million Civil Penalty
The SEC stated: "that on September 21, 2009, it filed a settled civil action against Regions
Bank (Regions) in the District Court for the Southern District of Florida, for its role in connection with a Florida-based offering fraud by unregistered broker-dealers U.S. Pension Trust Corp. and U.S. College Trust Corp. (collectively, USPT). For over six years, Regions or its predecessor bank
served as trustee of investment plans through which USPT defrauded thousands of investors (residing primarily in Latin America) by charging
exorbitant, undisclosed commissions and fees in connection with the sale of
mutual funds."
2009-202
21-Sep-2009
Press Release--Civil Action
SEC Charges Regions Bank for Role in Offering Fraud Harming Latin American Investors
The SEC stated that: "[It] charged Alabama-based Regions Bank for its role in an offering fraud that victimized thousands of investors predominantly in Latin America. The SEC alleges that Regions Bank and its predecessor were a key selling point in the investment scheme because the relationship with a U.S. bank gave Latin American investors the impression that their funds would be secure."
Final Judgment as to Defendant Regions Bank
On September 21, 2010, Federal District Judge Marcia G. Cooke entered Final Judgment against Regions Bank, pursuant to the SEC and Regions Bank's consent.
District Court Enters Final Judgment Against Defendant Regions Bank to Pay Civil Penalty
On October 4, 2010, the SEC announced that: "on September 21, 2010, the District Court for the Southern District of Florida, entered a Final Judgment against Defendant Regions Bank for its role in connection with a Florida-based offering fraud by unregistered broker-dealers U.S. Pension Trust Corp. and U.S. College Trust Corp. (collectively, 'USPT').
