Connecticut Attorney General George Jepsen announced a settlement late Thursday with Martin Kanefsky, the former chief executive of Kane Capital Strategies Inc., as part of a nationwide investigation of alleged anticompetitive and fraudulent conduct in the municipal bond derivatives industry.
Under the settlement, Kanefsky has agreed to pay $250,000 in restitution and to cooperate in the continuing investigation by a multistate working group of attorneys general in 24 states and the District of Columbia.
Connecticut is leading the investigation.
According to Jepsen, Kanefsky is the first broker to settle with the working group, which to date has obtained settlements valued at roughly $250 million. Previous agreements were reached with Bank of America, UBS AG and J.P. Morgan Chase & Co.
