By AP/KWMU
St. Louis – Brokerage firm Edward Jones has agreed to a $75 million settlement with the federal government.
The deal announced Monday by the U.S. Attorney's office in St. Louis comes on the same day that the attorney general in California announced a securities fraud lawsuit against Edward Jones, which is based in St. Louis.
Eastern Missouri U.S. Attorney James Martin says the settlement stems from allegations that Edward Jones failed to tell investors about payments it received from seven mutual funds.
Martin says the company urged its brokers to recommend and sell those funds without proper disclosure.
The California suit alleges the same thing.
The Missouri settlement calls for the money to be used as restitution for customers.