Montgomery, Al. (WSFA) -- The Retirement Systems of Alabama (RSA) is going through some changes after a year-long investigation by the Securities and Exchange Commission. The SEC accused the RSA of making a $700,000 gain through insider trading, just before the sale of a television company.
It all has to do with Raycom Media's purchase of the Liberty Corporation, which owned WSFA-TV. Raycom Media is primarily financed by the RSA. Before the sale was announced, the RSA bought a large sum of Liberty stock.
When RSA officials realized the discrepancy, it repaid the $700,000 it made on the Liberty stock deal plus interest. It also contacted the Securities and Exchange Commission.
SEC Commission, Christopher Cox, who just happened to be in town Wednesday, explained why no fines or penalties were levied against the RSA.
"Because the problem that we saw was a lack of policy and procedures, and therefore by putting the correct procedures in place the problem is solved," he said.
RSA Chief, David Bronner agrees the problem is solved.
"There's nothing to be accountable for because all we did was make money. We didn't lose any money and we ended up just giving it back."
The Securities and Exchange Commission says it chose this course of action because no one personally benefited from the transaction and RSA cooperated during its investigation.
RSA officials say they are making changes in their procedures and company manual to ensure a similar mistake doesn't happen again.