Action against Respondent, a registered broker-dealer, for alleged failure to supervise a trader in connection with his fraudulent activity.  According to the SEC, the trader provided artificially inflated price quotes or marks for certain mortgage-backed securities to a customer in exchange for trades being sent to Respondent.  The SEC alleges that Respondent and its CEO knew of the trader’s conduct and failed to implement policies and procedures reasonably designed to prevent his violations.  Respondent has agreed to pay a civil penalty of $250,000.

SEC Order

SEC Press Release

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