The AG's Authority in Nebraska
Nebraska Attorney General Mike Hilgers and the Nebraska Department of Banking and Finance have authority under the Nebraska Securities Act (Neb. Rev. Stat. §8-1101 et seq.) to investigate broker-dealer practices.
The Harm to Nebraska Investors
Omaha is home to major financial institutions and sophisticated investors — but retail investors statewide are subject to the same PFOF arrangements without disclosure.
Mike Hilgers has an estimated 340,000 Nebraska retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Nebraska's chief law enforcement officer will protect the financial interests of Nebraska residents when federal regulators have failed to act.
The Griffin Political Context
Nebraska Attorney General Mike Hilgers should be aware of the documented political investment Kenneth Griffin has made in Nebraska. Griffin has given contributions to Nebraska's governor and national Republican organizations to former Governor Pete Ricketts (now U.S. Senator) and the Republican Governors Association. This political context does not determine what the AG should do — but it is relevant to understanding why federal and state regulators have been slow to act, and why an independent state investigation would be meaningful.
What the AG Should Investigate
- Whether PFOF arrangements between major discount brokers and Citadel Securities violate Nebraska consumer protection law by creating undisclosed conflicts of interest
- Whether Nebraska broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Nebraska retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Mike Hilgers
Nebraska residents can contact the Attorney General's office at https://ago.nebraska.gov to request investigation of PFOF-related broker-dealer practices affecting Nebraska investors.