U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21682 / October 4, 2010
DISTRICT COURT ENTERS FINAL JUDGMENT AGAINST DEFENDANT REGIONS BANK TO PAY CIVIL PENALTY
SEC v. Regions Bank, Civil Action No. 09-CV-22821-COOKE/Bandstra (S.D. Fla. Filed September 21, 2009)
The Securities and Exchange Commission (Commission) announced today that on September 21, 2010, the District Court for the Southern District of Florida, entered a Final Judgment against Defendant Regions Bank for its role in connection with a Florida-based offering fraud by unregistered broker-dealers U.S. Pension Trust Corp. and U.S. College Trust Corp. (collectively, "USPT"). The final judgment requires Regions Bank to pay disgorgement of $1.00 and a civil penalty in the amount of $1,000,000 into a Fair Fund for the benefit of investors injured in USPT's faud. Regions Bank consented to the entry of the final judgment without admitting or denying any allegations of the Complaint (except as to jurisdiction), waived findings of fact and conclusions of law, and waived any right to appeal from this final judgment.
The Commission commenced this action by filing its Complaint on September 21, 2009, against Regions Bank. Regions Bank or its predecessor bank served as trustee of investment plans through which USPT defrauded thousands of investors by charging exorbitant, undisclosed commissions and fees in connection with the sale of mutual funds. The Commission's Complaint charged Regions Bank with violations of Sections 17 (a)(2) and 17(a)(3) of the Securities Act of 1933, and with aiding and abetting USPT's violations of Section 15(a)(1) of the Securities Exchange Act of 1934 by serving as trustee.
For additional information, see Litigation Release No. 21215 (September 21, 2009).