The managing directors of a Charlotte investment advisory firm have been charged by the Securities and Exchange Commission for their role in a complex investment that authorities say was put together with significant conflicts of interest, the regulator announced.
Scott H. Shannon and Joseph G. Parish III will pay $472,000 and be forced to leave the industry. They accepted the settlement but did not admit to or deny the charges.
The SEC also charged Merrill Lynch, which structured and marketed the securities. The investment bank, now owned by Bank of America, agreed to pay $132 million to resolve claims that it mislead potential investors about the independence of the people deciding what made up the CDOs.
***Sign up for our morning email newsletter -- the Bank Watch Morning Report. Find out more here.***