State Auditor announces settlement, restitution for Montanans charged high brokerage fees

Some Montana residents may receive a holiday bonus thanks to the Office of the Commission of Securities and Insurance. 

A coordinated multi-state task force, which included the Montana Auditor’s Office, had been investigating five major brokerage firms for allegedly charging unreasonable minimum commissions in violation of federal law and totaling nearly $19 million. 

This summer, the task force announced settlements with the five firms, and Montana Auditor James Brown told the Daily Montanan that the next phase — letting Montanans know if they were affected and getting them their money back — is underway. 

“We take our consumer protection role pretty seriously at this agency and we have some really good news to announce to folks who have been wronged,” Brown said in a phone interview. “… We are glad we are able to do our duty as Montana’s watchdog, protect Montanans’ money and hold firms accountable.”

Brown said that roughly $160,000 of Montanans’ money was recovered in restitution and will be paid back from the brokerage firms. 

His office is sending out letters to all Montanans who were affected customers, letting them know they’ll be reimbursed their dollars. Some brokerage firms may have checks in the mail or will deposit money directly into accounts, he said. 

“We’re going to be giving a number of Montanans some good Thanksgiving news,” Brown said. 

Earlier this year, the auditor’s office announced national settlements with five major firms — Edward Jones, LPL Financial, RBC Capital Markets, Stifel, Nicolaus and Company, and TD Ameritrade. 

Securities regulators from Alabama, Iowa, Massachusetts, Missouri, Texas and Washington, as well as Montana, had investigated allegations that the firms had charged unreasonable minimum commissions to retail customers that often exceeded 5% of the principal amount on small equity trades. 

From 2018 to 2025, according to the investigations, the five firms collectively charged nearly $19 million in excessive commissions across more than 1.1 million transactions. 

Brown said that in Montana, the five firms collectively mischarged more than 8,000 transactions resulting in $160,000 in restitution for Montana victims. 

Under the settlements, the companies have also agreed to pay administrative fines, cover investigative costs to the states, review their policies and compliance systems, and are censured, and must permanently cease and desist from charging unreasonable commissions. 

“This settlement with these firms on these transactions that violated federal law is just another step we’ve taken since I became commissioner to hold Wall Street firms accountable when they engage in wrongdoing,” Brown said. “If a firm overcharges Montana investors, they can expect a knock on the door from my team.”

Brown added that additional investigations are still underway with other, unnamed companies. 

The commissioner’s office is asking Montanans to check their mailboxes for the letters from the office informing them if they are covered by the settlements, and to check for checks or brokerage statements if they are expecting to receive restitution. 

Residents can contact the state securities and insurance office via email at [email protected] or by calling 406-444-2040.

Earlier this year, the auditor’s office announced a multi-state settlement with Edward Jones following an investigation into the brokerage charging front-load commissions. 

Another settlement, announced in May,  with the Vanguard Group, Inc, resolved an investigation into capital gains tax distributions from retirement funds back in 2021.