The Securities and Exchange Commission (SEC) charged a New York-based attorney for allegedly engaging in improper conduct by violating her obligations to remain independent after preparing an independent compliance report for a company.
Ellen McCarthy agreed to an order suspending her from appearing or practicing before the commission, the SEC said in an administrative proceeding Thursday.
McCarthy violated the independence requirement related to her work as an engagement manager retained by an unnamed independent consultant hired by Manhattan Transfer Registrar Company after a 2018 settlement the company reached with the SEC, according to the agency’s order.
The details: In May 2018, Manhattan Transfer agreed to settle charges levied by the SEC over the unregistered sale of undisclosed blank check companies securities.
The SEC ordered the company to engage an independent consultant to review and recommend corrective action regarding its policies, procedures, and supervisory controls.
In September 2018, the consultant and McCarthy submitted their report to the SEC, after which they were required to do no further work for Manhattan Transfer for at least two years.
However, from at least late September 2018 to late April 2019, McCarthy continued to work as an engagement manager for the company, according to the SEC. She did so despite the agency declining her request to waive the independence obligations and allegedly took actions to hide her work, including making false or inaccurate statements during testimony.
Following her work at Manhattan Transfer, McCarthy served for more than four years as head of risk and compliance U.S. and global chief risk officer, issuer services for a transfer agent registered with the SEC.
The agency said in its order she told its staff she is retired and does not intend to return to legal or compliance work.
McCarthy agreed to settle with admitting or denying the SEC’s findings.
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