- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2023-08-08T19:09:00
The Securities and Exchange Commission (SEC) ordered a Florida-based fund administrator to pay more than $122,000 to settle allegations it missed red flags regarding a $39 million fraud.
Theorem Fund Services agreed to pay a $100,000 penalty, disgorgement of $18,000, and prejudgment interest of $4,271, the SEC announced in a press release Monday. The firm consented to cease and desist from further violations.
From approximately January 2018 through March 2019, Theorem served as the administrator for a Detroit-based hedge fund adviser shut down by the SEC in May 2022 for running a “Ponzi-like” scheme that included the misappropriation and misuse of investors’ funds.
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Broker-dealers complying with anti-money laundering/countering the financing of terrorism requirements put forward by the SEC must be mindful of the resources they are providing for their programs during the current heightened risk environment.
Digital World Acquisition Corp. faces a penalty of $18 million as part of a settlement reached with the Securities and Exchange Commission regarding fraud allegations related to its dealings with Trump Media & Technology Group.
Financial services firm Cantor Fitzgerald agreed to pay a $1.4 million penalty as part of a settlement with the Securities and Exchange Commission addressing alleged reporting failures.
First Horizon Advisors will pay a $325,000 fine to settle allegations from the Securities and Exchange Commission that it violated Regulation Best Interest in part due to issues with incorporating a merged firms’ accounts into its systems.
Gatekeepers including chief financial officers and the chair of the audit committee have a responsibility to shareholders to report fraud wherever they find it–especially when that fraud involves an artificial intelligence tool meant to combat fraud.
Fines for off-channel communications use by employees just keep on coming, with 12 municipal advisory firms fined a total of $1.3 million in the latest Securities and Exchange Commission sweep.
