RBC Capital Markets LLC of New York has agreed to pay $30.4 million to settle charges that it sold unsuitable, high-risk investments to five eastern Wisconsin school districts, as well as charges that it inadequately disclosed the risks.

The misconduct charges were brought by the Securities and Exchange Commission, or SEC, after RBC marketed and sold $200 million in credit-linked notes to trusts created by the districts.

The notes were tied to the performance of synthetic collateralized debt obligations, or CDOs, according to the SEC...

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The Financial Industry Regulatory Authority or FINRA ordered Richard H. Byerly of Chester Springs, Pennsylvania to pay $30,000 in restitution to and was suspended for two years from association with any FINRA member in any capacity for the unauthorized churning of customer accounts belonging to two senior citizens.

Although FINRA found that he "exercised discretion," meaning that he effected unauthorized trading in 12 of his customer accounts, FINRA only focused on two accounts, where the customers collectively lost $390,000.

In one account, belonging to a...

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