A recent media campaign assailing other broker/dealers for improper conduct has come back to bite
More significantly, the firm has just revealed in an
The findings have left Jones, which just agreed to a $75 million for failing to disclose shelf-space arrangements with seven fund companies, with mud on its face. Until recently, the brokerage, which has boasted of its independence from Wall Street research and enjoyed a clean-cut, folksy image, ran an ad saying: "Investors are entitled to transparency. They should know what they are paying and what we, as the broker, are receiving." Signing this statement was none other than Doug Hill, the firm's top executive, who agreed this past Tuesday to step down by the end of next year as part of the firm's settlement with the Justice Department.
The incentives included boondoggles such as trips with an average value of $5,000 to places including Switzerland and the British Virgin Islands.