San Marino, Lawndale and the Three Valleys Municipal Water District have each received more than $100,000 from E.F. Hutton, a brokerage firm they plan to sue after losing millions of dollars in speculative investments.
Hutton explained in a letter that the money represented the amount the firm received in brokerage fees during the time it handled their accounts, local officials said. The letter said that the payments are not an admission of guilt, the officials said.
Hutton invested some of the money in margin accounts that fell sharply in 1986, causing severe losses. City and water officials claim that the investments violated regulations and were unauthorized, while Hutton officials have said they received proper authorization for the investments.
San Marino lost about $2 million in margin-account investments and received $106,000 this week from Hutton. Lawndale lost an estimated $1.68 million and received about $107,000. The water district, which serves cities in the eastern San Gabriel Valley, lost about $1.5 million and was given $104,000.