Medallion Financial Must Face Nearly All of SEC’s Fraud Charges

Medallion Financial Corp. and its chief executive officer must face all but one of the fraud claims leveled against them by the Securities and Exchange Commission, a federal judge in New York said.

The SEC alleged that Medallion Financial, its CEO, Andrew Murstein, and others violated federal securities laws by perpetrating two fraudulent schemes to prop up Medallion Financial’s stock price. Specifically it accused the defendants of illegally touting Medallion Financial’s strength and of obtaining fraudulent valuations of Medallion Bank, a wholly owned subsidiary of Medallion Financial, Judge Lewis A. Kaplan of the US District Court for the Southern ...