A state regulator fined a Bank of America investment unit for allowing its advisors to mislead clients about bonds related to government sponsored enterprises.

Banc of America Investment Services Inc. was fined $100,000 by the state of Massachusetts for advisors providing misleading information about bonds related to Fannie Mae and Freddie Mac, according to a report in the Boston Herald.
Secretary of State William Galvin alleged that two advisers, John Patrick Keating and Reggie Cajigal Aquino, promised an investor that bonds were guaranteed by the federal government. After the investigation began, the investor received a refund of the $2 million in bonds that he bought.

In addition to the fine, Galvin ordered an extensive compliance training program for advisers who used to work for Banc of America Investment Services, but are now work for Merrill Lynch. Keating still works for Merrill, but Aquino does not.