The Waukesha School District could recover some of its lost funding after five Wisconsin school districts saw millions of dollars disappear in failed investments. The companies that sold the investments to the school districts now face prosecution from the Securities and Exchange Commission.
The Securities and Exchange Commission announced Tuesday that it is charging “RBC Capital Markets LLC for misconduct in the sale of unsuitable investments to five Wisconsin school districts and its inadequate disclosures regarding the risks associated with those investments,” a news release states.
However, the company agreed to settle the charges involving about $37.3 million of funds from area school districts. RBC Capital Markets agreed to settle the case by paying $30.4 million, which will be split among the five school districts.