West Virginia placed E. F. Hutton on probation.
The brokerage firm was also ordered to pay $10,000 to cover the costs of a state investigation of cash management abuses. Barring additional violations of state and federal law during the one-year probation, Hutton can continue to do business in West Virginia, said Jack Hall, state securities division chief. Hutton pleaded guilty last year to 2,000 counts of federal mail and wire fraud in what prosecutors said was a scheme to manipulate checking accounts to get interest-free use of billions of dollars of its banks’ money.
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