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

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

February 7, 2025
Court Finds American Airlines Breached Fiduciary Duty in 401(k) ESG Case

A federal court ruling against American Airlines has brought attention to the role of environmental, social, and governance (ESG) factors in managing retirement plans.

February 7, 2025
SEC Charges LPL Financial with Anti-Money Laundering Failures

The Securities and Exchange Commission (SEC) has charged LPL Financial LLC, a broker-dealer and investment adviser, with multiple violations of anti-money laundering (AML) regulations.

February 6, 2025
Vanguard Settles SEC Charges Over Target Date Fund Disclosures for $106 Million

Vanguard has agreed to pay $106.41 million to settle charges by the Securities and Exchange Commission (SEC) over alleged disclosure failures related to its target date retirement funds (TDFs).