- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-08-29T18:23:00
A Chicago-based broker-dealer agreed to pay a $1.5 million penalty as part of a settlement with the Securities and Exchange Commission (SEC) for allegedly failing to file nearly 500 suspicious activity reports (SARs) largely related to microcap or penny stock securities transactions.
Archipelago Trading Services operates an over-the-counter (OTC) alternative trading system (ATS) for equity securities used by broker-dealers to execute trades. The SEC faulted the firm for not properly supervising high-risk securities transactions it executed daily over an eight-year span, the agency said in a press release Tuesday.
Beginning in August 2012, Archipelago operated its ATS, known as Global OTC, without a reasonably designed anti-money laundering (AML) surveillance program for its transactions, according to the SEC’s order. It wasn’t until September 2020 that the firm established proper AML policies and procedures for tracking transactions.
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Intercontinental Exchange and nine affiliates agreed to pay $10 million for allegedly failing to inform the Securities and Exchange Commission of a cyber intrusion as required by Regulation Systems Compliance and Integrity.
New York-based broker-dealer Maxim Group agreed to pay an $800,000 fine in settling with the Securities and Exchange Commission regarding the firm’s alleged failures to file required suspicious activity reports and properly execute certain short sales.
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.
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
