ropeways.net | Home | 2017-04-18
Raymond James Reaches Jay Peak Settlement
ST. PETERSBURG, Fla. – Raymond James Financial Inc. (NYSE: RJF) announced that it has reached an agreement to settle all investor claims against the firm related to the previously disclosed Jay Peak EB-5 visa matter, subject to the court’s review and approval, and other customary conditions.
The $150 million settlement relates to an alleged fraudulent EB-5 investment program created in 2007 by third parties and offered directly to foreign investors. EB-5 is a U.S. government visa program through which foreign investors and their immediate families can obtain permanent residency green cards by making a capital investment in a U.S. business. Raymond James did not act as placement agent or in any other capacity for the program and none of the investors in the program purchased their investments through Raymond James. A Raymond James financial advisor for the brokerage accounts of the related investment partnerships is no longer employed by the firm.
Raymond James worked diligently with the SEC-appointed receiver to structure a settlement that would ensure investors in the program are fairly compensated– either by funding the costs to finish incomplete projects or by returning funds where the underlying construction project is no longer feasible.
“We believe this resolution is fair and representative of our commitment to redressing the victims’ losses in this case,” said EVP and General Counsel Jonathan Santelli.
The firm’s supervision program has undergone significant enhancements for a number of years now, including considerable investment in its anti-money laundering (AML) control infrastructure including a substantial increase in AML associates, hiring a new chief AML officer with extensive experience, expanded training for all associates, and the integration of Mantas, a state-of-the-art transaction monitoring solution, to better detect suspicious activity.
As of December 31, 2016, the company had accrued $50 million related to this matter. The settlement provides the firm with the right to share in proceeds of certain third party recoveries that may be obtained by or on behalf of the SEC-appointed receiver or the receivership entities.
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has 7,100 financial advisors serving approximately 3 million client accounts in more than 2,900 locations throughout the United States, Canada and overseas. Total client assets are $637 billion. Public since 1983, the firm has been listed on the New York Stock Exchange since 1986 under the symbol RJF. Additional information is available at www.raymondjames.com.