April 4 Credit Suisse Securities (USA), a unit
of Credit Suisse AG, and a former investment adviser
have agreed to pay about $8 million in fines to settle charges
relating to improper investments, the U.S. Securities and
Exchange Commission said.
According to the SEC's orders issued on Tuesday, Credit
Suisse collected about $3.2 million in avoidable fees from
clients during 2009-2014, and about $2.5 million of that amount
was generated from Sanford Katz's advisory clients. (bit.ly/2nVHr1H)
Without admitting or denying the SEC's findings, Credit
Suisse and Katz will collectively pay disgorgement of about $3.2
million, some $600,000 in prejudgment interest, and penalties
totaling around $4.1 million.
Katz, who was a former managing director and relationship
manager at the bank's San Francisco office, purchased or held
Class A mutual fund shares for advisory clients who were
eligible to purchase or hold less expensive institutional share
classes of the same mutual funds, the SEC said.
Credit Suisse did not immediately respond to an email
outside regular U.S. business hours. Katz could not immediately
be reached for comment.
In January, Credit Suisse formally agreed to pay $5.3
billion to settle with U.S. authorities over claims it misled
investors in residential mortgage-backed securities it sold in
the run-up to the 2008 financial crisis.
Last year, Calvert Investments agreed to settle a civil case
with the SEC after being accused of mispricing bonds and
collecting inflated fees.
(Reporting by Vishal Sridhar in Bengaluru; Editing by Biju