More Settlements Reached In Bentley Financial Case

Register now

The Securities and Exchange Commission said last week it reached settlements with two more salesmen for rogue CD brokerage Bentley Financial Services, which bilked credit unions and community banks out of as much as $75 million through the sale of bogus CDs.

Both Jeffrey Patterson and Terrance Turman agreed to one-year bans from the securities business and to pay $2.2 million in fines, with the vast majority of the fines to be waived because of an inability to pay.

Two months ago the SEC agreed to similar settlements with two other Bentley brokers, Mathew Matz and Robert Glazewski, who were suspended from the securities business for six months and fined a total of $1.4 million, which was also waived for an inability to pay.

The four salesmen sold phony CDs to credit unions by claiming they were federally insured bank-issued certificates, when in fact such certificates did not exist. More than 220 financial institutions, including 120 credit unions, are expected to lose as much as $75 million on the scheme.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER