Securities: Davison Pays $250,000 to Settle Fraud Case

Pat Davison, a Billings, Montana businessman, will pay $250,000 to settle a state securities fraud case in which he is believed to have defrauded nine people of about $6 million through a Ponzi scheme. Davison will face additional penalties when he is sentenced in June. Davison pleaded guilty to two federal securities fraud charges. Montana state auditor John Morrison said that Davison will have 10 years to pay the fine and will permanently be barred from selling securities in Montana.

Davison to pay $250,000 fine to settle securities fraud case

Morrison said that "this fine should send a strong signal that Ponzi schemes and other securities fraud will be firmly punished in Montana." Davison was a former Republican gubernatorial candidate. One of his former employers, UBS Financial Services, already reached a settlement in which they will pay Davison's clients more than $4.5 million in restitution.