A.G. Edwards Will Pay $28 Million to Georgia Investors

[54anickel]

http://www.miami.com/mld/miamiherald/business/national/8177249.htm

Mar. 13 - A.G. Edwards Inc. will pay more than $28 million to about 100 investors in Georgia who say a former branch manager promised them double-digit annual returns on blue-chip stocks and then invested their retirement savings in risky technology companies.

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Under that agreement, the firm would not admit guilt but could pay a $500,000 fine and have its broker-training and compliance programs reviewed for about two years, said Chris Riggall, a spokesman for Georgia Secretary of State Cathy Cox.

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William F. Gibbs Sr., branch manager at the time, told the factory workers that their money would be invested using the Dow Dividend Strategy, which he said historically had returns of 20 percent a year, Dovin said.

Gibbs, who is retired, began deviating from the decades-old investment strategy, eventually much of the investors' money was placed in technology stocks, Dovin said.

[question everything]

1. At least the money goes to the investors

When Eliot Spitzer fined the other brokerage firms who got all the millions? Not the investors, but the bank account of the state of New York.

[Yupster]

2. Putting your retirment package

in any kind of stocks is more risky than I'll do.

I put enough in bonds and cd's to guarantee the monthly check the people want and then put extra in stocks.

It's hard to believe brokers would guarantee results in the stock market. How stupid is that?