Actions against Respondents, a registered broker-dealer, its AML Officer, and a registered broker-dealer specializing in business clearing equity securities, for alleged reporting violations. The SEC alleges that Respondents Chardan and Basmagy neglected to file Suspicious Activity Reports (“SARs”) despite having reason to suspect that certain penny stock transactions that they executed were associated with fraudulent activity. The SEC alleges that Respondent ICBC cleared some of these suspicious trades and contacted Chardan regarding the suspicious activity, but failed to file the required SARs. Respondent Chardan has agreed to pay a $1 million civil penalty, Respondent Basmagy has agreed to pay a civil penalty of $15,000, and Respondent ICBC has agreed to pay a civil penalty of $860,000.
Home > Financial Institutions and Regulated Entities > In re Chardan Capital Markets, LLC (A.P. May 16, 2018, Settled); In re Jarard Basmagy (A.P. May 16, 2018); In re Industrial and Commercial Bank of China Financial Services, LLC (“ICBC”) (A.P. May 16, 2018, Settled)