UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 87175 / September 30, 2019

ADMINISTRATIVE PROCEEDING

File No. 3-19220

ORDER DIRECTING PAYMENT OF 

CERTAIN FUNDS RECEIVED BY THE 

COMMISSION AND DIRECTING THE 

TRANSFER OF REMAINING FUNDS TO 

TREASURY

On June 27, 2019, the Commission simultaneously instituted and settled an administrative 

and cease and desist proceeding against IFS Securities (“IFS” or “Respondent”). These proceedings 

arise out of IFS’s violation of Municipal Securities Rulemaking Board’s Rule G-17 and, by reason of 

that violation, Section 15B(c)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”). In 

the Matter of IFS Securities, Admin. Proc. File No. 3-19220 (the “OIP”).1In the OIP, the 

Commission ordered that IFS be censured and comply with certain undertakings. The Commission

further ordered IFS to pay a civil penalty of $50,000 to the Commission of which $12,500 shall be 

transferred to the MSRB in accordance with Section 15B(c)(9)(A) of the Exchange Act, with such

payment to be made within 10 days of the entry of the OIP and created a Fair Fund pursuant to

Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended.

The Commission has received the civil penalty amount referenced above. The Commission 

staff shall, within 90 days of the issuance of this order, pay such funds (the “Fair Fund”) to the 

investor previously identified by Commission staff who suffered a net loss in connection with the 

violations described in the OIP (“Eligible Investor”). The Eligible Investor’s shall receive the amount 

of the civil penalty remaining after $12,500 is transferred to the MSRB in accordance with Section 

15B(c)(9)(A) of the Exchange Act (after accounting for taxes and administrative expenses associated 

with the distribution of these amounts). Commission staff will seek the appointment of a tax 

administrator for the Fair Fund as it constitutes a payment from a qualified settlement fund (“QSF”) 

under section of 468B(g) of the Internal Revenue Code (IRC), 26 U.S.C. Section 468B(g), and 

related regulations, 26 C.F.R Sections 1.468B-1 through 1.468B-5. Taxes, if any, and related 

administrative expenses shall be paid from funds remaining after the payment has been made to the 

Eligible Investor. After the distribution payments and all taxes and administrative expenses are 

paid, the Commission staff will transfer any remaining funds, if any, to the general fund of the 

United States Treasury subject to Exchange Act Section 21F(g)(3).

 

1

 See Order Instituting Administrative Proceedings Pursuant to Sections 15(b) and 15B(c) of the Securities Exchange 

Act of 1934, Making Findings, and Imposing Remedial Sanctions, Exchange Act Rel. No. 86210 (June 27, 2019).

In the Matter of

IFS Securities 

Respondent.
2

Accordingly, it is ORDERED that:

A. The Commission staff shall distribute the Fair Fund created in this matter and pay 

the Eligible Investor as set forth in this Order; and,

B. After payment is made to the Eligible Investor, the Commission staff shall pay 

taxes, if any, and related administrative expenses from the funds remaining after 

payment to the Eligible Investor. Any remaining funds paid by the Respondent to 

the Commission shall be transferred to the U.S. Treasury.

By the Commission.

Vanessa A. Countryman 

Secretary