Action against Respondents, a broker-dealer, its CEO, and its former registered representative, in connection with the alleged fraudulent manufacture by three undisclosed control persons of undisclosed blank check companies for sale by a reverse merger.  According to the SEC, Respondents misrepresented the blank check companies as start-up companies managed and operated by a named sole officer, and concealed the fact that the blank check companies had no business purpose other than to be sold as public vehicles by the undisclosed control persons.  Respondents CEO and representative allegedly signed and filed a Form 211 application with FINRA for each blank check company containing these misrepresentations and omissions. The SEC alleges that Respondent broker-dealer failed to conduct the analysis required in connection with the Forms 211.  Respondent representative has agreed to pay disgorgement of $9,260.85 and prejudgment interest of $1,509.80.

SEC Order