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Written by 7:51 pm Blog, Current Investigations

Wedbush Securities Settles Charges for Unregistered Microcaps 

Wedbush Securities Settles Charges for Unregistered Microcaps, featured by top securities fraud attorneys, The White Law Group

The SEC Hits Wedbush Securities with more than $1.2 Million for Supervisory Issues with Microcap Companies 

According to a press release, Wedbush Securities, a broker-dealer headquartered in Los Angeles, is paying more than $1.2 million to settle charges by the Securities and Exchange Commission for allegedly unlawfully distributing nearly 100 million unregistered shares of more than 50 different low-priced microcap companies. 

The SEC reportedly said the firm also failed to file suspicious activity reports in connection with the transactions in question. 

Between January 2017 and September 2018, Wedbush purportedly engaged in unregistered offers and sales of large blocks of low-priced securities that were part of the allegedly unlawful, unregistered distribution of securities by Silverton SA, also known as Wintercap SA, a former offshore customer, according to the complaint. Wedbush reportedly failed to conduct a reasonable inquiry into the facts surrounding the sales, and therefore its offers and sales did not qualify for the usual exemption from registration that applies to brokers’ transactions, according to the regulator. 

Wedbush agreed to pay payment of disgorgement and prejudgment interest of over $207,000, and a civil penalty of $1 million, without admitting or denying the findings. 

This is not the first time that Wedbush Securities has been in trouble with regulators. To learn more about the firm’s investigations, please see: 

Wedbush Securities- Broker Misconduct, Customer Complaints and Regulatory Actions 

Wedbush Fined for Failure to Supervise 

FINRA Hits Wedbush Securities with $1.4 Million for Elder Abuse 

 Free Consultation with a Securities Attorney

This information is publicly available and provided to you by The White Law Group. 

If you are concerned about your investments with your financial advisor, the securities attorneys at The White Law Group may be able to help you. For a free consultation, please call the offices at 888-637-5510. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firms. 

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com. 

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Last modified: December 17, 2021