Blum Law Group Files Securities Class Action Against Regions Bank Alleging Regions Aided and Abetted the Sale of Securities by an Unregistered Dealer
Blum Law Group has filed a class action lawsuit against Regions Bank (“Regions”), a banking subsidiary of Regions Financial Corporation (NYSE: RF). The securities class action filed in the United States Southern District of Florida alleges claims for violation of the Florida Securities and Investor Protection Act. The basis for the lawsuit is that Regions personally participated or aided in the sale of securities by dealers that were not registered with the State of Florida.
Specifically, U.S. Pension Trust Corp. ("USPTC") and U.S. College Trust Corp. ("USCTC") (collectively, "USPT") sold securities from offices located in the State of Florida without registering as a broker-dealer with the Securities and Exchange Commission ("SEC"). The class is defined as all persons and entities who contributed money to the investment plans sold by USPT between September 21, 2006 and August 31, 2009, inclusive.
A U.S. District Judge in the Southern District of Florida already has ruled that USPT violated federal law by failing to register as a broker-dealer, and another federal court judge entered a final judgment against Regions for aiding and abetting USPT's violations of federal registration laws. Regions agreed to pay a $1 million penalty to settle those charges.
USPT also failed to register as a dealer with the State of Florida, which the class action lawsuit alleges USPT was required to do pursuant to the Florida Securities and Investor Protection Act. The class action lawsuit seeks to hold Regions liable under Florida law for personally participating or aiding in USPT's sales of securities when USPT was not registered as a dealer with the State of Florida.
USPT offered and sold investment plans (the "Investment Plans") to approximately 14,000 investors in Latin America and the United States. The complaint alleges that Investment Plans required investors to execute trust agreements, whereby the trustee (Regions) would serve as trustee on behalf of each of the investors. In serving as the trustee, Regions received Investment Plan "contributions" from each investor, collected a trustee fee, and other fees associated with the Investment Plans.
As a result of other fraudulent conduct by USPT, Investment Plan investors have lost most or all of their money. The class action lawsuit seeks to rescind investors' investments in the Investment Plans so that investors get their money returned to them.
Blum Law Group specializes in prosecuting securities class actions on behalf of institutions and individuals. If you were an investor in USPT or have any questions regarding this matter, you may contact Scott Silver or Janine Arno at (877) 786-2552.