Cantor Fitzgerald & Co. has been ordered by the Financial Industry Regulatory Authority to pay $7.3 million in sanctions after allegations arose accusing the company of selling unregistered stocks. According to the accusations, Cantor Fitzgerald sold billions of unregistered microcap shares to its customers. They also allegedly had inadequate policies in place regarding supervisory and anti-money laundering programs.
So far, two executives of the company were fined and suspended. The investment bank’s executive managing director of equity, Jarred Kessler, was fined $35,000 and suspended from a principal capacity for three months. Joseph Ludovico, the bank’s equity trader, was suspended for two months in all capacities and fined $25,000.
FINRA found that the company allegedly failed to implement an effective system regarding the microcap securities. Because of this, they allegedly overlooked potential red flags and it resulted in billions of unregistered shares being sold without review between March 2011 and September 2012.
Without admitting or denying the allegations, Cantor Fitzgerald consented to the sanctions handed down by FINRA. They agreed to pay $6 million in regulator’s fines and roughly $1.3 million in commissions, plus interest. The order comes just three months after the investment bank lost its third wealth management unit executive in 2015.
If you lost money because Cantor Fitzgerald & Co. sold you unregistered stocks, call our securities fraud lawyers today. Meyer Wilson may be able to help you file a claim to recover your losses. Schedule your free case evaluation today to get started.