In the Matter of BMO Capital Markets Corp.

Admin. Proc. File No. 3-22398

On January 13, 2025, the Commission instituted and simultaneously settled administrative proceedings (the “Order”) against BMO Capital Markets Corp. (the “Respondent”).  In the Order, the Commission found that between December 2020 and May 2023, certain CMC registered representatives engaged in a scheme to misleadingly alter the Collateral Information used in marketing of certain Agency CMO Bonds (the “CMO Bonds”). The Commission further found that CMC failed to establish and implement supervisory procedures reasonably designed to prevent and detect the CMC Registered Representatives, subject to CMC’s supervision, from providing misleading information when offering and selling the CMO Bonds to customers.

The Commission ordered the Respondent to pay $19,417,908.00 in disgorgement, $2,241,507.00 in prejudgment interest, and a $19,000,000.00 civil money penalty, for a total of $40,659,415.00, to the Commission.  The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected, along with the disgorgement and interest collected, can be distributed to harmed investors (the “Fair Fund”).See the Commission’s Order:  Release No. 34-102160.

The Fair Fund includes the $40,659,415.00 paid by the Respondent, and any additional funds collected from the Respondent, pursuant to the Order, will be added to the Fair Fund.  The Fair Fund and has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov