Metropolitan Mortgage & Securities Issues Update
December 15 2003 - 7:19PM
PR Newswire (US)
Metropolitan Mortgage & Securities Issues Update SPOKANE,
Wash., Dec. 15 /PRNewswire-FirstCall/ -- Metropolitan Mortgage
& Securities Co., Inc. , together with its financial advisors,
continues to explore its strategic alternatives to address its
short-term and long-term liquidity concerns. As previously
announced, the company's affiliate, Metropolitan Investment
Securities, Inc. (MIS), a National Association of Securities
Dealers, Inc. (NASD) member firm, ceased operations and customer
transactions on December 15, 2003. MIS was the sole broker dealer
for the sale of the company's securities and MIS will no longer
sell the company's securities. Such sales have been in the past a
significant source of liquidity for the company. The cessation of
MIS' customer transactions and operations followed its entry into a
Letter of Acceptance, Waiver and Consent (AWC) with the NASD, which
was finalized on October 23, 2003. The AWC settled allegations by
the NASD that MIS had inadequate supervisory procedures and engaged
in fraudulent and unethical sales practices in connection with the
sale of debentures, investment certificates and preferred stock
issued by the company and another affiliated company, Summit
Securities, Inc. MIS neither admitted nor denied the allegations.
Pursuant to the AWC, MIS was censured and fined $500,000. In
addition to other undertakings, MIS agreed to make restitution of
approximately $2.8 million to certain investors and to maintain for
a five-year period a special escrow account in the amount of $1
million for the benefit of additional investors. DATASOURCE:
Metropolitan Mortgage & Securities Co, Inc. CONTACT: MARY
KELLER, MARKET DEVELOPMENT & EXTERNAL AFFAIRS of Metropolitan
Mortgage & Securities Co., Inc., +1-509-835-2811
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