The AG's Authority in Utah
Utah Attorney General Derek Brown and the Utah Division of Securities have authority under the Utah Uniform Securities Act (Utah Code Ann. §61-1-1 et seq.) to investigate broker-dealer practices.
The Harm to Utah Investors
Utah's tech sector ('Silicon Slopes') has created a growing population of retail investors. Utah's strong culture of financial planning and investment makes retail investors particularly vulnerable to undisclosed PFOF harms.
Derek Brown has an estimated 590,000 Utah retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Utah's chief law enforcement officer will protect the financial interests of Utah residents when federal regulators have failed to act.
The Griffin Political Context
Utah Attorney General Derek Brown should be aware of the documented political investment Kenneth Griffin has made in Utah. Griffin has given more than $1.5 million in Utah-linked political contributions to Senator Mitt Romney, who served on the Senate Banking Committee, and national Republican organizations. 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 Utah consumer protection law by creating undisclosed conflicts of interest
- Whether Utah broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Utah retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Derek Brown
Utah residents can contact the Attorney General's office at https://attorneygeneral.utah.gov to request investigation of PFOF-related broker-dealer practices affecting Utah investors.