SEC v. Alexander Capital, L.P. (churning, 2018)

Settled

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In June 2018 the SEC settled with broker-dealer Alexander Capital, L.P., finding it failed reasonably to supervise three registered representatives who made unsuitable recommendations, churned customer accounts and traded without authorisation between 2012 and 2014. The firm was censured and ordered to pay $193,775 in disgorgement, $23,437 in interest and a $193,775 penalty.

The record

What was ordered

Civil penalty

$194k

Disgorgement

$194k

Prejudgment interest

$23.4k

Total relief

$411k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission issued this settled order on June 29, 2018 in administrative proceeding 3-18561. The respondent is Alexander Capital, L.P. (0 individuals, 1 entity), which neither admitted nor denied the findings.

The charge against the firm is a supervisory failure. The order finds that from 2012 through 2014 Alexander Capital did not reasonably implement its policies, permitted a lax compliance environment and let its supervisors ignore indications of misconduct by three registered representatives. Those representatives made unsuitable recommendations, churned customer accounts and traded without authority; their turnover rates and cost-to-equity ratios were extremely high, and the firm's own written procedures banned churning but gave supervisors no workable system to find it.

Alexander Capital was censured and ordered to pay disgorgement of $193,775, prejudgment interest of $23,437 and a civil penalty of $193,775 in instalments. An earlier version of this record omitted the penalty and interest. The representatives' own cases are recorded separately.

For the regulator's own account of the facts, read the primary document linked above.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Churning — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2018-06-29 Administrative proceeding instituted (findings)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.