The Securities and Exchange Commission announced Friday that it has reached a $1.95 million settlement with First Allied Securities Inc. for failing to supervise one of its former brokers who engaged in unauthorized, fraudulent trading in the accounts of two Florida municipalities.

The settlement follows securities fraud and other charges the SEC filed in late December against the broker, Harold Jaschke, who “churned” the investment accounts of Kissimmee and the Tohopekaliga Water Authority in Florida.

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