SEC v. Albert Fried & Company, LLC (2016)
Settled
Checked against the primary document on October 2, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In 2016 the Securities and Exchange Commission settled an administrative proceeding with Albert Fried & Company, LLC, finding that the broker-dealer never filed a suspicious activity report between 2010 and 2015 despite customers repeatedly depositing and quickly selling low-priced shares, in violation of Exchange Act Section 17(a) and Rule 17a-8. The firm was censured and paid a $300,000 civil penalty. The order does not charge the firm with manipulating any price.
The record
| Agency | SEC |
|---|---|
| Release number | 34-77971 |
| Date filed | 2016-06-01 |
| Date resolved | 2016-06-01 |
| Status | settled |
| Asset class | bonds, equities |
| Venue | NYSE, OTC |
| Criminal parallel | No |
| Defendants | Albert Fried & Company, LLC |
| Techniques |
What was ordered
- Civil penalty
- $300k
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $300k
- Alleged gain
- —
What is alleged to have happened
the Securities and Exchange Commission announced this matter on June 1, 2016 as release 34-77971. The respondents named are Albert Fried & Company, LLC (0 individuals, 1 entity).
The order finds an anti-money-laundering reporting failure: the firm received large deposits of low-priced securities from customers who then sold a large share of daily volume in thinly traded penny stocks, and it filed no reports in over five years even though its own procedures listed these red flags. A customer executive's later pump-and-dump charges in another security are cited as a red flag the firm learned of, not as conduct charged against it. This library carries no technique tag on this matter.
The conduct is recorded against bonds and equities, with NYSE, OTC identified in the release.
The relief recorded in our data is a civil monetary penalty of $300,000. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.
Timeline
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.