Wedbush Pays $2.4 Million to SEC
Los Angeles-based Wedbush Securities and two executives have agreed to pay $2.44 million to settle SEC charges related to Wedbush’s allegedly willful violations of the SEC’s market access rule. While this reportedly is the first SEC fine Wedbush has paid, it has a long history of fines levied by FINRA, another securities regulator. Wedbush remains the target of similar charges brought against it by FINRA. The brokerage firm also has been the subject of many FINRA arbitration claims filed by investors who claimed to be the victims of stockbroker fraud and other misconduct.
According to the SEC, Wedbush violated the market access rule by failing to have adequate risk controls in place when letting customers access the markets through Wedbush’s systems. As a result, the firm gave direct market access to overseas traders without pre-approving their accounts and making sure they complied with U.S. laws.
While brokerage firms historically had been able to settle regulatory charges without admitting any fault, more recently the SEC has required firms to admit fault as part of settlement deals. Consistent with that position, Wedbush admitted wrongdoing and agreed to retain an independent consultant to review its current compliance controls and procedures.
The securities fraud attorneys at Dimond Kaplan & Rothstein, P.A. have filed numerous FINRA arbitration claims against Wedbush over the years and have helped recover more than $100 million from some of the largest banks and brokerage firms in the world. If you or someone you know has lost money with Wedbush Securities, you may have certain legal rights that require your immediate attention. Contact us to schedule an appointment or consultation today.