SEC v. Chardan Capital Markets, LLC (2018)

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.

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In 2018 the SEC settled an administrative order against Chardan Capital Markets, LLC for failing to file suspicious activity reports on penny stock transactions, with a $1,000,000 civil penalty.

The record

What was ordered

Civil penalty

$1m

Disgorgement

—

Prejudgment interest

—

Total relief

$1m

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

On May 16, 2018 the SEC accepted a settlement with Chardan Capital Markets, LLC, a registered broker-dealer. The order finds that from October 2013 to June 2014 Chardan did not file suspicious activity reports on penny stock transactions for customers that it knew or had reason to suspect involved fraud or had no apparent lawful purpose, and it imposes a censure, a cease-and-desist order and a $1,000,000 civil penalty.

The order's mentions of unregistered distributions come from Chardan's own anti-money-laundering policies and a FINRA notice, which list them as red flags. It does not find that Chardan itself violated Section 5.

This library does not assign a technique tag to the matter, because no technique page in the current taxonomy describes the conduct the document records.

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

1. 2018-05-16 Administrative proceeding instituted (cease-and-desist)

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.

Record added September 10, 2026. submit a correction.