Chelsea Financial to repay Montanans for losses

Chelsea Financial ordered to repay Montanans for investment losses due to account "churning"

Associated Press

HELENA, Mont. (AP) -- Investment firm Chelsea Financial Services has agreed to repay more than $262,000 lost by Montana investors' accounts because a salesman was making unauthorized trades and collecting commissions.

Montana Securities Commissioner Monica Lindeen says New York City-based Chelsea Financial Services does not admit or deny allegations that it failed to adequately supervise the salesman, but has agreed to pay restitution to the investors, a $40,000 fine and investigative costs of just over $10,000.

The Commissioner of Securities and Insurance office alleged the Montana investors were charged over $148,000 in commissions out of a total of $274,000 invested.

The consent agreement says one investor lost nearly $67,000 while another lost almost $58,000.

Lindeen says Chelsea is no longer operating in Montana.

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