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Violation Tracker Individual Record

Company: BMO Capital Markets Corp.
Current Parent Company: Bank of Montreal
Parent at the Time of the Penalty Announcement:  subscribe to see this data field
Penalty: $40,000,000
Year: 2025
Date: January 13, 2025
Offense Group: financial offenses
Primary Offense: investor protection violation
Violation Description: The Securities and Exchange Commission charged registered broker-dealer BMO Capital Markets Corp. with failing to supervise employees who, from December 2020 until May 2023, sold mortgage-backed bonds using offering sheets and bond metrics that were misleading and did not accurately describe the characteristics of the collateral backing the bonds. To settle the charges, BMO agreed to pay more than $40 million in disgorgement, prejudgment interest, and a civil penalty.
Level of Government: federal
Action Type: agency action
Agency: Securities and Exchange Commission
Civil or Criminal Case: civil
HQ Country of Current Parent: Canada
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: financial services
Specific Industry of Current Parent: banking
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.