SeaCrest to pay $375K to settle charges that it failed to supervise rogue adviser
By 
Aaron Nicodemus2024-12-16T14:45:00
New York-based SeaCrest Wealth Management will pay a $375,000 fine for failing to properly prevent a cherry-picking scheme perpetrated by one of its investment advisers.
The Securities and Exchange Commission (SEC) announced Thursday that it has charged Eric Cobb with engaging in a three-year scheme in which he allocated profitable securities trades to accounts he controlled, and unprofitable trades to the accounts of other clients. He earned approximately $170,000, while his clients lost approximately $188,000, the SEC alleged.
Cobb, an investment adviser at SeaCrest, bought securities in an omnibus account, then waited a day or longer to allocate the trades, in order to see whether the securities had increased or decreased in price. He also engaged in risky trades inconsistent with the conservative investment profiles of his clients, retail investors who included several teachers.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefTD Bank unit to pay $28M in penalties for failing to properly supervise rogue trader
Broker-dealer TD Securities failed to prevent a trader from placing and then withdrawing thousands of false trades over the course of a year in part because its compliance department failed to follow up on red flags generated by the illegal trades, three regulators said.
-
News BriefBank of America unit fined $24M in FINRA spoofing case
Bank of America Securities agreed to pay $24 million in settling with the Financial Industry Regulatory Authority for allegedly failing to supervise the “spoofing” activities of two former traders in U.S. Treasury markets.
-
News Brief
OFAC, FinCEN tighten screws on Sinaloa Cartel’s money laundering network
The Trump administration has taken two actions to attack money laundering rings operating in Mexico, highlighting the U.S. government’s focus on curbing the fentanyl trade and the illegal profits it generates.
More from Regulatory Enforcement
-
News BriefFRC fines PwC, auditor combined $4.1M over 2019 work of Wyelands Bank
The U.K. Financial Reporting Council issued penalties against PwC and a former auditor over deficiencies on work related to the 2019 financial statements of now shuttered Wyelands Bank.
-
News BriefDOJ fines MORSE Corp $4.6M for lax cyber controls amid crack down on federal contractors
Yet another government contractor has been slapped with a fine by the Department of Justice for applying lax cybersecurity defenses on sensitive government data.
-
News BriefEU regulator questions 'culture of compliance' with Digital Markets Act at Apple, Google
The European Commission released its preliminary findings last week regarding Apple and Google not complying with the Digital Markets Act. It issued orders to both companies regarding their business practice and plans to release all of its findings next week.