WASHINGTON -- A civil suit filed yesterday by the SEC charges a securities dealer with violating the antifraud provisions of securities laws for allegedly failing to inform more than a dozen Ohio municipalities and school districts of the risks involved with derivative transactions that ultimately caused them to lose millions of dollars.

In the suit, filed in the U.S. District Court for the Northern District of Ohio, the Securities and Exchange Commission is seeking a permanent injunction barring the dealer, Kenneth Schulte, from conducting fraudulent securities transactions. In addition, the commission wants Schulte to turn over his profits from the transactions, the total of which the commission is still trying to calculate.

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