SEC v. Sidoti & Company, LLC (2017)

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.

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In 2017, the Securities and Exchange Commission settled an action with Sidoti & Company, LLC, a broker-dealer, over its failure for more than eight months to have written policies preventing misuse of confidential information in connection with an affiliated hedge fund run by its chief executive. The release records a civil penalty of $100,000.

The record

What was ordered

Civil penalty

$100k

Disgorgement

—

Prejudgment interest

—

Total relief

$100k

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 announced this matter on February 13, 2017 as release 34-80027. The respondent named is Sidoti & Company, LLC (1 entity). The Commission found that from November 3, 2014, when the affiliated hedge fund began trading in issuers covered by Sidoti's research and some of its banking clients, until July 10, 2015, Sidoti had no written policies and procedures to prevent misuse of material nonpublic information by its founder, chief executive and other people making the fund's investment decisions. It consented to a censure, a cease-and-desist order under Exchange Act Section 15(g) and a $100,000 civil penalty.

The order charges a policy failure and finds no instance of insider trading, so this library no longer tags it as insider trading. No other technique fits, so it carries no technique tag.

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. 2017-02-13 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.