- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-12-14T17:10:00
New York-based brokerage firm J.H. Darbie & Co. was charged with violations of anti-money laundering (AML) provisions of federal securities laws by the Securities and Exchange Commission (SEC) for failing to report suspicious activity regarding penny stock transactions.
J.H. Darbie failed to report suspicious activity on “tens of billions” of shares of low-priced securities, also known as penny stocks, from 2018-20, according to the SEC’s complaint filed Monday.
J.H. Darbie accepted for deposit the low-priced securities of approximately 160 issuers reflected in approximately 1,800 deposits at one of its clearing brokers and the further processing of approximately $105 million in net transaction proceeds to customers through approximately 12,000 sale transactions involving 30 billion shares of such issuers, the complaint said.
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New York-based brokerage firm J.H. Darbie & Co. consented to pay a $125,000 penalty to resolve charges levied by the Securities and Exchange Commission that the firm failed to report suspicious activity regarding penny stock transactions.
Cambria Capital agreed to pay $100,000, hire an independent anti-money laundering consultant, and be censured for failing to file suspicious activity reports on certain transactions over a two-year period, according to the Securities and Exchange Commission.
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Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
