The AG's Authority in Wisconsin
Wisconsin Attorney General Josh Kaul and the Wisconsin DFI Division of Securities have authority under the Wisconsin Uniform Securities Law (Wis. Stat. Ch. 551) to investigate broker-dealer conflicts. Given Griffin's donations to Wisconsin Banking Committee members, the AG's independence is particularly valuable.
The Harm to Wisconsin Investors
Wisconsin's manufacturing and dairy economy has a large working-class retail investor population. Griffin's significant political investment in Wisconsin — including to Senator Ron Johnson of the Senate Banking Committee — raises serious questions about regulatory capture.
Josh Kaul has an estimated 1.1 million Wisconsin retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Wisconsin's chief law enforcement officer will protect the financial interests of Wisconsin residents when federal regulators have failed to act.
The Griffin Political Context
Wisconsin Attorney General Josh Kaul should be aware of the documented political investment Kenneth Griffin has made in Wisconsin. Griffin has given more than $5.75 million in Wisconsin-linked political contributions to former Governor Scott Walker, Senator Ron Johnson — who sits on the Senate Banking Committee — 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 Wisconsin consumer protection law by creating undisclosed conflicts of interest
- Whether Wisconsin broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Wisconsin retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Josh Kaul
Wisconsin residents can contact the Attorney General's office at https://www.doj.state.wi.us to request investigation of PFOF-related broker-dealer practices affecting Wisconsin investors.