Ferris Baker Watts sets shareholder vote on RBC Wealth Management union

Washington, D.C.-based brokerage and investment bank Ferris Baker Watts has set a June 20 shareholder vote on its acquisition by RBC Wealth Management.

The meeting date was disclosed in a prospectus filed Wednesday with the Securities and Exchange Commission by RBC's parent, Royal Bank of Canada (NYSE: RY). The companies, which agreed to the deal in February, expect it to be completed in the second quarter, the prospectus says.

Along with shareholder approval, the $230 million deal must also be approved by regulators in the U.S. and Canada. Canadian banking regulators have given their approval, according to previous SEC filings. The parties can terminate the deal if it is not completed by July 1, SEC filings show.

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The deal follows a turbulent year for Ferris, which said in February 2007 that it was being investigated by the SEC and the U.S. Department of Justice. The investigation focused on former Ferris client David Dadante and his IPOF Fund, which prosecutors alleged was a $47 million fraudulent scheme. Dadante pleaded guilty to federal fraud charges in Ohio last year and was sentenced to 13 years in prison.

Former Ferris stockbroker Stephen Glantz also pleaded guilty to charges of fraud and making false statements, and was sentenced to nearly three years in prison.

Earlier this year, Ferris agreed to pay $16 million to settle claims against the firm by IPOF Fund investors. Ferris said in its prospectus that it may have to pay up to another $1.2 million to the Securities and Exchange Commission.

Privately held Ferris, which is owned by its employees, has 42 branches and nearly $19 billion in assets under administration. Ferris is the ninth-largest brokerage firm in Greater Baltimore, with 66 brokers here, according to Baltimore Business Journal research.

RBC Wealth Management has 150 branches in 40 states.