INDIANAPOLIS – Indiana Secretary of State Diego Morales sent a cease and desist letter on Thursday to BlackRock — the world’s largest asset manager — for alleged securities fraud, accusing the company of making “false and misleading statements” about their environmental, social, or governance (ESG) funds and allocation focus.
Morales issued the letter via the Indiana Securities Division, an arm of the secretary of state’s office tasked with regulating the securities industry. The letter is nearly identical to one by Mississippi Secretary of State Michael Watson issued in March.
The Indiana Securities Division alleges BlackRock, “through its assertions relating to ESG products and offerings, has repeatedly made false and misleading statements to Hoosier investors,” Morales said.
The secretary of state accuses the company of fraud for supposedly telling clients their financial prospects and outcomes would be better in the long run through ESG-backed funds.
“Investment companies that engage in fraudulent activities not only betray the trust of their clients but undermine the integrity of our financial markets,” Morales said Thursday in a written statement. “My office is committed to rigorously enforcing the law and strengthening our regulatory frameworks to ensure Hoosier investors are protected and those who exploit the system are held accountable.”
Read the entire Casey Smith story for the Indiana Capital Chronicle, here.
