Montana State Auditor and Commissioner of Securities and Insurance James Brown announced that thousands of Montana investors will receive more than $160,000 in restitution following enforcement actions against several national brokerage firms accused of charging unreasonable commissions on certain equity transactions.
The cases involve small principal equity trades conducted between May 2020 and the end of April 2025 in which commissions exceeded 5% of the principal trade amount. Over the past month, Brown signed consent orders with Edward Jones, LPL Financial and TD Ameritrade resolving the allegations.
Under the agreements, Edward Jones will provide $67,601.53 in restitution to Montana investors for 4,922 transactions, pay a $100,000 administrative fine and reimburse the state $25,000 in investigative costs. LPL Financial agreed to pay $16,711.73 in restitution covering 857 transactions, along with a $25,000 fine. TD Ameritrade, which has since been acquired by Charles Schwab, agreed to pay $2,634.09 in restitution for 176 transactions, as well as a $15,000 fine and $35,000 in administrative and investigative costs.
The Commissioner’s office is also finalizing two additional consent agreements expected to be completed by year’s end. Stifel, Nicolaus & Company has agreed in principle to provide $7,174.42 in restitution for 382 transactions, pay a $20,000 fine and cover $10,000 in investigative costs. RBC Capital Markets, LLC has agreed in principle to pay $67,570.69 in restitution for 1,707 transactions and a $25,000 fine.
In total, the enforcement actions will return more than $160,000 to Montana investors, while fines and recovered costs for the agency’s investigative efforts are expected to total approximately $255,000.
“Montanans work hard for their money, and they deserve a fair deal every time they invest or make a trade,” Brown said. “When Montanans were charged excessive commissions on everyday transactions, this office acted as the Treasure State’s watchdog, quickly stepped in, and got restitution back to harmed Montana investors.”
Brown said the consent orders formally censure the firms and require them to review and strengthen their policies, procedures and supervisory practices related to equity commissions to prevent similar overcharges in the future. The firms are responsible for directly notifying affected Montana customers and issuing restitution payments. In most cases, investors will not need to take any action to receive their funds. The Commissioner’s office will also receive detailed reports documenting how and when restitution is paid.
Brown encouraged investors to carefully review account statements and trade confirmations and to contact the Commissioner’s office if they believe they were overcharged or misled.
“Whether it’s a few hundred dollars or a few thousand, this office will stand up for Montana’s investors and hold firms accountable when they break the rules,” Brown said. “We will continue to aggressively police unreasonable fees and commissions and protect Montana families from financial harm.”
The cases also highlight Montana’s role in a broader, multi-state effort. Montana was one of seven lead investigative states on the issue, and officials emphasized the settlements were not “coattails” agreements but the result of direct investigative work by the Montana Commissioner of Securities and Insurance.
“This is just phase one of an ongoing, multi-state investigation, and we will be pursuing settlement agreements or enforcement actions against other brokerage firms in 2026,” Brown said.
By DNU Staff