SEC v. Canaccord Genuity Inc. (2016)
Settled
Checked against the primary document on October 3, 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 March 2016 the SEC settled with Canaccord Genuity Inc., finding that the firm published research initiating coverage of an issuer days after being invited to underwrite that issuer's planned stock offering, an offer that did not meet the prospectus requirements of Securities Act Section 5(b)(1). The order requires $407,481 of disgorgement, $42,717 of interest and a $100,000 penalty. The issuer's earlier reverse merger is background only.
The record
| Agency | SEC |
|---|---|
| Release number | 3-17178 |
| Date filed | 2016-03-24 |
| Date resolved | 2016-03-24 |
| Status | settled |
| Asset class | equities |
| Criminal parallel | No |
| Defendants | Canaccord Genuity Inc. |
| Cited as charged or alleged | Securities Act s.5 |
| Techniques |
What was ordered
- Civil penalty
- $100k
- Disgorgement
- $407k
- Prejudgment interest
- $42.7k
- Total relief
- $550k
- Alleged gain
- —
What is alleged to have happened
The Securities and Exchange Commission announced this settled order on March 24, 2016 as file 3-17178. The respondent is Canaccord Genuity Inc. (0 individuals, 1 entity), which neither admitted nor denied the findings.
This library carries no technique tag on the matter. The order finds that Canaccord violated Securities Act Section 5(b)(1) by initiating research coverage of an issuer on April 18, 2012, days after the issuer invited it to underwrite a planned secondary offering, in a report that did not meet the prospectus requirements of Section 10. Canaccord then managed the U.S. portion of a $40 million offering days later. This is gun jumping, not one of the manipulation mechanisms this library tags. The order recites that the issuer had completed a reverse merger in December 2011; it does not allege that merger was improper, so the reverse-merger tag does not apply.
Canaccord was censured and ordered to pay $550,198: $407,481 in disgorgement, $42,717 in prejudgment interest and a $100,000 civil penalty. An earlier version of this record omitted the penalty.
For the regulator's own account of the facts, read the primary document linked above.
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.