Dec 20 2007
Contact: Ryan Hobart; Mindy Mazur, (573) 526-4734; (573) 522-9756

Carnahan Recovers $50,000 in Restitution for St. Louis Investors

Munsch, a securities broker with St. Louis-based Stifel, Nicolaus & Company, Inc., made over 500 trades in three Missouri residents’ accounts during a three year period, resulting in commissions to Munsch of over $125,000. Munsch admitted that in some of the transactions he recommended he was the only one who benefited from the trade.

In addition, Munsch met one of his clients at a senior center presentation. Munsch will pay $50,000 in restitution to his clients, who ranged in age from 53 to 87 years old.  All of the clients receiving restitution had annual incomes of less than $50,000 when they opened their accounts.

In violation of company policy, Munsch also provided gifts to his customers including tickets to events and use of his personal timeshare in Florida. Stifel had placed Munsch on heightened supervision twice before the three-year period of excessive trading began.

“Every hard-working Missourian deserves to receive financial advice from someone who has their best interest in mind," said Carnahan. "Our office will continue to crack-down on those who exploit Missouri investors.”

Munsch’s registration in Missouri as a securities agent has been suspended for 21 days and, in addition to the $50,000 restitution payment, he will pay $57,500 in payments and costs to the Missouri Investor Education and Protection Fund.

Munsch will also be under special supervision by a Stifel branch manager for four years and will not be allowed to have discretionary authority over any client account, participate in any sales contests or provide gifts to any clients. 

For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at or call the toll free investor hotline at 1-800-721-7996.