FINRA Fines Cantor Fitzgerald & Co. $6,000,000 for Supervisory Issues
According to the Financial Industry Regulatory Authority, Cantor Fitzgerald & Co., (New York, New York), was censured, fined $6,000,000 and disgorged of $1,285,561 plus interest. The firm reportedly consented to findings that the firm had failed to adequately supervise sales of microcap securities pertaining to due diligence. Additionally FINRA reports that Cantor Fitzgerald didn’t identify red flags with unlawful distributions of unregistered securities.
The firm’s executive managing director of equity capital markets was fined $35,000 and suspended in all principal capacities for a period of three months; while the firm’s equity trader was fined $25,000 and suspended in all capacities for a period of two months.
For FINRA’s full findings, see FINRA case No. 2012034964301.
Failure to Supervise
Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agents, they can be held responsible for losses in a FINRA arbitration claim.
Are you concerned about your investments with Cantor Fitzgerald & Co.? If so, the securities attorneys at The White Law Group may be able to help you. For a free consultation, please call the offices at (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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