A Milwaukee based investment firm has agreed to forfeit more than $100 million in revenue and profits to settle charges of illegal mutual fund trading.
The penalties come against Strong Financial Corporation and its founder, Richard Strong, who's agreed to a lifetime ban from the securities industry. Strong Financial is accused of allowing some of its clients, friends and family to make improper trades that hurt other Strong investors, but benefited the company.
Under an agreement with state and federal regulators, Strong will reduce the fees it charges on mutual funds, so that the penalties come directly from the management company, not investors.
State Attorney General Peg Lautenschlager said the settlement money will go back to the investors. The company will pay $80 million, of which 85 percent of that will be the responsibility of Richard Strong.
Until Strong's resignation in December, he was frequently listed among the list of wealthiest Americans. He started the company 30-years-ago and owns 90 percent of the company.