Missouri
Missouri Secretary Of State Recovers Commissions Paid To Girard Munsch
By Bob Hudson
Mar 11, 2010 - 10:47:41 AM

On Thursday, Missouri Secretary of State Robin Carnahan announced an agreement with Stifel, Nicolaus and Company, which will return $78,000 out of the commissions paid by clients of Girard Munsch, bringing the case involving the disgraced Stifel securities broker to a close. Munsch made over 500 trades in accounts belonging to three Missouri investors during a three year period, and admits that he was the only one who benefited from the transactions he recommended. Carnahan says, “Stifel did the right thing by returning the commissions gained from its former broker’s inappropriate actions.” In addition, Stifel will pay more than $130,000 in penalties, payments and costs, and its registration has been censured.

The Securities Division took action against Stifel for failing to properly supervise Munsch, and not identifying and acting on his excessive trading and unsuitable recommendations. Munsch entered into a separate consent order at the end of 2007 that suspended his license and required him to pay $50,000 in restitution to the investors. Munsch retired and left Stifel two months after that order was issued, and is no longer licensed in Missouri. The Missouri Securities Division continued its investigation after the Munsch action and engaged in extended negotiations with Stifel over the past several months before this resolution was reached. Investors with questions or concerns about their investments should call the Missouri Investor Protection Hotline toll-free at 1-800-721-7996 or visit the Secretary of State's web site at www.sos.mo.gov.