Massachusetts Suing RBC Capital Over Leveraged ETF Sale
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Massachusetts’ top securities regulator is suing RBC Capital Markets LLC over the sale of leveraged and inverse exchange-traded funds, saying they sold them to clients who didn’t understand the investments.
Secretary of the Commonwealth William F. Galvin said RBC Capital and Michael D. Zukowski, a former agent, used “dishonest practices” in selling the funds, according to a statement e-mailed today. The lawsuit seeks restitution to Massachusetts investors, a cease and desist order, and an administrative fine.