SEC v. LBMZ Securities, Inc. (2017)
Settled
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In September 2017 the SEC censured broker-dealer LBMZ Securities and fined it $240,000 for failing to enforce written policies to prevent misuse of material non-public information, particularly around its link to an affiliated sponsored-research arm. The order does not charge the firm with trading on inside information.
The record
| Agency | SEC |
|---|---|
| Release number | 34-81719 |
| Date filed | 2017-09-26 |
| Date resolved | 2017-09-26 |
| Status | settled |
| Criminal parallel | No |
| Defendants | LBMZ Securities, Inc. |
| Techniques |
What was ordered
- Civil penalty
- $240k
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $240k
- Alleged gain
- —
What is alleged to have happened
The Commission found that from 2013 to 2015 LBMZ did not obtain or review complete brokerage records for many employees, reviewed employee communications only minimally, and set up no meaningful information barrier around its investment banking division, despite that division's relationship with Zacks Small Cap Research. It found a willful violation of Section 15(g) of the Exchange Act.
On consent the firm was censured and ordered to pay a $240,000 civil penalty. Because the finding is a compliance failure, the insider-trading tag has been removed.
Timeline
Primary documents
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