Subscribe to our mailing list

* indicates required







We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.


Stay Informed with the latest fanancialish news.




Regulatory Sanctions

Columbia Investments Failed to Prevent Theft of Investor Funds - SEC

February 12, 2017

In an SEC Administrative Proceeding, Boston-based transfer agent Columbia Investment Management Services has agreed to pay a $250,000 fine to settle SEC charges that it failed to adequately safeguard and protect customer funds and securities, leading to an incident where an employee stole approximately $1.2 million worth of mutual funds from investors.


SEC investigators founds found that …  Columbia employee Ronald Hunt obtained sensitive account information regarding foreign deceased shareholders, and falsified documents to transfer securities from those accounts to an account he controlled. He then liquidated the securities and wired the funds to another account he controlled. Columbia never detected the misuse of information or theft of securities.


The misappropriation was only detected when authorized persons for the customer accounts tried to withdraw funds and investments, but found that everything had been withdrawn and the accounts were closed. Columbia made both shareholder accounts whole, referred Hunt to federal law enforcement, and subsequently recovered all of the misappropriated funds from Hunt.


The SEC’s disciplinary actions took into account remedial actions taken by Columbia, including enhancements to its redemption form and implementing additional levels of approval for certain data requests.