Wedbush Securities Settles SEC Failure-To-Supervise Charges Related to Pump and Dump Scheme

Posted on March 15th, 2019 at 9:10 AM
Wedbush Securities Settles SEC Failure-To-Supervise Charges Related to Pump and Dump Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Wedbush Securities, Inc. has agreed to settle an SEC administrative proceeding related to the firm’s failure to take action despite being aware that an employee was involved in a long-running pump-and-dump scheme.

According to the SEC, Wedbush Securities ignored numerous red flags and conducted two “flawed and insufficient” investigations involving its investment adviser Timary Delorm, who was involved with manipulative penny stock trading scheme that targeted retail investors.

In its consent order, the SEC stated that starting as far back as 2012, Wedbush Securities knew of Delmore’s illicit activity after receiving an email outlining her role in the fraud scheme and later, after receiving a FINRA inquiry into her personal trading habits.

In addition to the $250,000 in civil monetary penalties, Wedbush Securities agreed to make firmwide remedial changes. For instance, Wedbush Securities agreed to reshuffle senior leadership, make policy and procedure revisions, and adopt more effective electronic surveillance.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, sec, wedbush securities, finra, pump and dump

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