ING Firm Ordered to Pay $59,000 in Mortgage Securities Case

ORLANDO-The 32-month-old civil and criminal investigations, coordinated by US Bankruptcy Court trustee William Cuthill on the defunct Evergreen Security Ltd., has resulted in the first direct ruling against a brokerage firm in the alleged 10-year, $214 million swindle perpetrated by Evergreen brokers and managers. Evergreen was formerly based here and the British Virgin Islands.

A three-member arbitration panel of the National Association of Securities Dealers has ruled IFG Network Securities, an Atlanta-based subsidiary of Dutch-owned ING Group, must pay Rau L. King, a Brevard County widow, $59,000 after one of the company’s brokers sold King and her late husband, Rex King, an unregistered US government, mortgage-backed securities.

The Kings had invested a total $45,800 in the alleged fraudulent fund, according to filed court documents. The Oct. 14 NASD ruling includes $13,200 in interest on the $45,800. IFG was also ordered to pay $6,200 in court costs. A bankruptcy court judge will rule later whether IFG has to pay an additional $100,000 in legal fees