Mississippi Secretary of State accuses investment company of fraudulent actions

JACKSON, Miss. (WJTV) – Mississippi Secretary of State Michael Watson (R-Miss.) and the Securities Division of his office issued a Summary Cease and Desist Order against BlackRock, Inc.

The multinational investment company was also issued a Notice of Intent to Impose Administrative Penalty.

Watson said the Securities Division seeks to stop BlackRock's alleged fraudulent actions and impose a multimillion-dollar administrative penalty.

BlackRock provides exchange-traded funds (ETFs), or pooled investments categorized as securities, and currently manages over $9 trillion in investments through 70 offices in 30 countries. Watson said the company recently asserted itself as a leader in the investment industry to promote environmental, social, and governance (ESG) factors on portfolio companies.

The Securities Division claims BlackRock, through its ESG assertions, has repeatedly made false and misleading statements to Mississippi investors. Watson said these misrepresentations pertain to BlackRock's involvement in pushing ESG factors on portfolio companies.

"Investment companies will not push their political agenda on Mississippians, especially through fraudulent and deceptive means," stated Watson. "All citizens should have the opportunity to make informed and educated decisions when investing their hard-earned money. If not, our office will hold these bad actors accountable."

For questions and concerns, contact the Securities Division at [email protected] or (601) 359-1334.