A former New York investment officer will pay $250,000 to victims and cooperate in Connecticut’s ongoing investigation to settle allegations of anticompetitive and fraudulent conduct involving the municipal bond derivatives industry, authorities say.
Attorney General George Jepsen announced the settlement Thursday with Martin Kanefsky, the former chief executive officer of Kane Capital Strategies Inc., of Great Neck, N.Y., as part of a nationwide investigation of alleged anticompetitive and fraudulent conduct in the municipal bond derivatives industry.
None of Kanefsky’s clients were in Connecticut and the state won’t share in the settlement money.
However, Kanefsky also has agreed to cooperate in the ongoing multistate probe led by Connecticut and involving investigators in 24 states and the District of Columbia.
Between 2001 and 2006, Kanefsky, through Kane Capital, provided brokerage services to governmental and nonprofits seeking to invest the proceeds of municipal bonds, Jepsen said
Kanefsky is the first broker to settle with the working group, which to date has obtained settlements valued at approximately $250 million, Jepsen said.
Previous agreements were reached with Bank of America, UBS AG and J.P. Morgan Chase.
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