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December 28, 2004
Tuesday, December 28, 2004 8:45:22 AM
Edward Jones $75M Scandal Forces Managing Director Out
Investigations by federal regulators and the U.S. Justice Department uncovered some seemly facts about a leading international investment advisory firm, Edward Jones: they kept their clients in the dark about receiving "tens of millions of dollars" since 1999 from seven mutual funds companies it placed on a "preferred" list. Meanwhile, EJ clients thought they were receiving independent and objective investment advice. The feds imposed a $75 million penalty; most to come from profits that otherwise would go to the 420 top partners. Top EJ managing partner Douglas Hill will apparently cover about $3 million of that fine, which just fits within his budget this year as he earned $200,000 base salary and $4.5 million in profit sharing. EJ has written employees to say they are looking for a successor to Hill. I wonder how many clients have written these same employees to say they are looking for a replacement to EJ?
Posted by Posted by Bill Cara on December 28, 2004 08:44:36 AM | Category: Cara Today in the Market