Giannoulias Secures Nearly $950,000 for Illinois Investors in a $19 Million Settlement

Illinois Secretary of State Alexi Giannoulias
Illinois Secretary of State Alexi Giannoulias

Giannoulias Secures Nearly $950,000 for Illinois Investors in a $19 Million Settlement

5 Broker-Dealers Charged Unreasonable Commissions on Small-Dollar Trades

Illinois Secretary of State Alexi Giannoulias announced nearly $950,000 will be returned to Illinois investors as part of a $19 million multi-state settlement involving five major brokerage firms accused of charging unfair fees on small stock trades.

The firms – Edward Jones, LPL Financial, RBC, Stifel and TD Ameritrade – were found by regulators in multiple states to have charged unreasonably high commissions on small-dollar trades during a five-year period, hurting everyday investors. The settlement was part of a broader enforcement action coordinated through the North American Securities Administrators Association’s (NASAA) Broker-Dealer Section, which included assistance from the Illinois Secretary of State’s Securities Division.

“These settlements send a strong message that financial firms must treat investors fairly and follow the law,” Giannoulias said. “Small Illinois investors should not lose large shares of money because of unfair fees that can take a significant bite out of their investments and savings. Our office remains committed to protecting Illinois investors and holding firms accountable when they violate securities laws.”

As part of the Illinois settlements, the firms must: return money to impacted Illinois investors; stop their improper fee practices; and pay $175,000 in fines to the state. In total, Illinois investors will receive at least $948,551.

Affected Illinois investors will be notified directly by mail by the brokerage firms before payments are issued. Under the terms of the settlements, restitution is expected to be distributed on a rolling basis this spring and summer.

Edward Jones will provide $654,428.95 in restitution to Illinois clients and pay a $100,000 fine to the department. Regulators found the firm charged unreasonable commissions on approximately 781,240 equity transactions nationwide totaling $11,287,504 from May 1, 2020 to April 30, 2025. Of those, 45,228 transactions involved Illinois residents. Edward Jones customers are expected to receive restitution within 180 days of the February 20, 2026 order.

Stifel will provide $39,705.79 in restitution to Illinois clients and pay a $20,000 fine to the department. The firm charged unreasonable commissions on approximately 45,352 equity transactions nationwide over a five-year period, including 2,078 transactions involving Illinois residents. Stifel customers were due to receive restitution within 60 days of the October 21, 2025 order.

LPL Financial will provide $124,665.76 in restitution to Illinois clients and pay a $20,000 fine to the department. Regulators found the firm charged unreasonable commissions on approximately 127,527 equity transactions nationwide from March 20, 2020 to March 20, 2025, including 3,534 transactions involving Illinois residents. LPL Financial customers within 60 days of the March 13, 2026 order.

RBC will provide $99,264.25 in restitution to Illinois clients and pay a $20,000 fine to the department. The firm charged unreasonable commissions on approximately 89,900 transactions nationwide over a five-year period, including 26,621 transactions involving Illinois residents. RBC customers will first receive notice within 45 days of the March 30, 2026 order, with payments due within 30 days after that.

TD Ameritrade will provide $30,486.68 in restitution to Illinois clients and pay a $15,000 fine to the department. Regulators found the firm charged unreasonable commissions on approximately 84,618 transactions nationwide from June 30, 2018 to June 30, 2023, including 2,325 transactions involving Illinois residents. TD Ameritrade customers within 120 days of the March 20, 2026 order.

In most cases, firms are expected to mail notification letters about a week before restitution checks are sent. If a notification letter or payment is returned as undeliverable, the firm must notify the Illinois Secretary of State’s Securities Department and make a second attempt if an updated address is available. If no valid address can be confirmed, the funds will be transferred to the Illinois State Treasurer’s Unclaimed Property Division.

Small investors, or retail investors, are individual, non-professional investors who buy and sell securities, mutual funds and exchange-traded funds through brokerage accounts, often through small-dollar transactions. Regulators found that excessive commissions on those trades disproportionately harmed smaller investors.

Giannoulias encouraged investors with questions or concerns about their investments or financial professionals to contact the Illinois Secretary of State Securities Department at (800) 628-7937. The Securities Department licenses and regulates financial services in Illinois and works to ensure compliance with state securities laws. Additional information about the Securities Department is available at www.ilsos.gov.

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