SEC v. Jerard Basmagy (2018)

Settled

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In 2018 the SEC settled an administrative order against Jerard Basmagy, Chardan's anti-money-laundering officer, for his part in the firm's failure to file suspicious activity reports, with a $15,000 penalty.

The record

What was ordered

Civil penalty

$15k

Disgorgement

—

Prejudgment interest

—

Total relief

$15k

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 Jerard Basmagy, who was responsible for anti-money-laundering compliance at Chardan Capital Markets, in the same matter as the firm's own order. The order concerns Chardan's failure to file suspicious activity reports on penny stock transactions between October 2013 and June 2014 and Basmagy's role in that failure, and imposes a $15,000 civil penalty.

The unregistered-distribution language in the order is taken from Chardan's compliance policies as a listed red flag. No violation of Section 5 is found against Basmagy.

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.