Wedbush Securities Inc. agreed March 13 to pay a $250,000 civil fine to settle an SEC investigation over allegations the firm ignored a pump-and-dump scheme involving one of its representatives.
The California-based financial firm failed to reasonably supervise one of its registered representatives in late 2012 and early 2013, according to a settlement with the Securities and Exchange Commission. The representative “engaged in manipulative trading activity of penny stocks over multiple years,” the SEC said.
The representative’s supervisors “reviewed an email outlining her role in fraudulent transactions,” the settlement said. The company’s legal and compliance teams were also aware of ...
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