The Rhode Island Commerce Corporation announced today it has reached a settlement with the U.S. Securities and Exchange Commission (SEC) in the matter of Securities and Exchange Commission v. Rhode Island Commerce Corporation, et al. regarding events arising in 2010.
As part of the conditions of the settlement, the Rhode Island Commerce Corporation is permanently enjoined from violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (the "Securities Act") in the offer or sale of any securities and has agreed to pay a civil penalty in the amount of $50,000 pursuant to Section 20(d) of the Securities Act.
This settlement will need to be approved by the United States District Court for the District of Rhode Island.
The Corporation previously settled claims against Hilltop Securities Inc., (formerly First Southwest Company) for $16 million in February 2017; Curt Schilling, Thomas Zaccagnino, Richard Wester, Jennifer MacLean, and their insurer, Starr Indemnity and Liability Company for $2.5 million in September 2016; Wells Fargo Securities, LLC and Barclays Capital Inc. for $25.625 million in August 2016; Antonio Afonso, Jr. and Moses Afonso Ryan Ltd. for $4.4 million in June 2014; and Adler, Pollock & Sheehan P.C., Robert I. Stolzman, J. Michael Saul, and Keith W. Stokes for $12.5 million in August 2015. These payments to the Corporation totaled over $61 million.