Deutsche Bank to Pay $4.4 Million Over Traders Who Misled on Bonds
February 12 2018 - 1:24PM
Dow Jones News
By Dave Michaels
WASHINGTON -- Deutsche Bank AG agreed to pay more than $4.4
million to settle regulatory claims that it failed to supervise
traders who misled customers about the price of commercial mortgage
bonds.
The Securities and Exchange Commission said Monday that the
payment includes $3.7 million to reimburse clients that traded with
the German bank, which also will pay a $750,000 civil penalty.
Deutsche Bank's traders generated illicit profits by misleading
customers from 2011 to 2015 about the prices they paid to acquire
the securities, which allowed them to sell the bonds at higher
prices, the SEC said.
The bank's former global head of securitized products trading,
Ben Solomon, agreed to a one-year ban from the securities industry
and will pay a $165,000 penalty, the SEC said. Mr. Solomon, 42
years old, was fired over the alleged misconduct in August
2015.
'"Deutsche Bank and Solomon failed to keep watch as traders
generated profits for the firm at the expense of CMBS customers by
misrepresenting purchase prices and other important details," said
Daniel Michael, the head of the SEC's complex financial instruments
unit.
A spokesman for Deutsche Bank said the bank "cooperated
extensively with the SEC's investigation and took appropriate
disciplinary action, including termination in some instances."
Write to Dave Michaels at dave.michaels@wsj.com
(END) Dow Jones Newswires
February 12, 2018 13:09 ET (18:09 GMT)
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