Raymond James pays $150M to settle ski resort lawsuit alleging fraud
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Raymond James has agreed to pay $150 million to settle allegations it enabled a scheme to defraud immigrant investors through a Vermont ski resort and related businesses.
The settlement is the third major regulatory payment the broker-dealer has incurred in the past year and could impact Raymond James' earnings. For the previous quarter ending in December, the company said it had already accrued $50 million in expenses. Raymond James next reports earnings later this month.
The alleged misconduct has already cost Raymond James tens of millions of dollars in legal expenses. An ex-branch manager has also lost his job at the firm. The settlement with an SEC-appointed receiver, attorney Michael Goldberg, was announced Thursday and is subject to a judge's approval.
"Most [of the investors] are being put in the position they would have been had there not been a fraud, and that was our goal," Goldberg says.