Ex-Cantor Fitzgerald Brokers Must Face SEC Records Suit

Two former Cantor Fitzgerald & Co. brokers can’t get an SEC suit accusing them of circumventing commission payment procedures dismissed, a Southern District of New York judge ruled Sept. 9.

Adam Mattessich and Joseph Ludovico must face the Securities and Exchange Commission’s suit because the agency has sufficiently alleged that they aided and abetted Cantor’s books and records violations, the court said. Cantor agreed to pay the SEC a $1.25 million fine for the alleged violations in 2018.

SEC rules require broker-dealers to keep records of which securities transactions are attributable to which employees for compensation purposes, and Cantor ...