Securities News Releases

Thursday, October 01, 2009
Contact: Laura Egerdal, (573) 526-0949

Carnahan Statement on Colorado and Indiana actions against Stifel

– The Securities Divisions of Colorado and Indiana today both filed administrative enforcement actions against Stifel, Nicolaus & Company for its auction rate securities practices. Colorado’s Division of Securities alleges that Stifel employed a “scheme … to defraud clients” and “made written and oral untrue statements,” which violates the anti-fraud provisions of the Colorado Securities Act. Indiana’s Securities Division alleges Stifel committed securities fraud and failed to supervise and train its employees, and is seeking to recoup $54 million invested by Indiana residents.

In response, Secretary of State Robin Carnahan released the following statement:

“I applaud the actions of the Colorado and Indiana Securities Divisions. It’s clear that Stifel misled its customers into believing the auction rate securities they invested in were ‘same as cash’ or ‘like a money market’ when they were not.  

It is time for Stifel to follow the lead of 20 other firms and give its customers the access to their money that was promised. Stifel customers should not have to wait any longer for the relief that so many other firms have already provided to their clients.

My office continues to work hard to get Missouri investors their money back as quickly as possible.”

-- 30 --

To find out more about Missouri’s Secretary of State’s office, visit

return to news >>

Toll-free Investor Protection Hotline
Report complaints or make inquiries