Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Sunday, October 4, 2009

SEC Revokes Registration of Broker-Dealer For Assisting Day-Trading Firm

The SEC settled administrative proceedings against GLB Trading, Inc. (GLB Trading), a broker-dealer registered with the Commission, and Robert A. Lechman (Lechman), GLB Trading's owner and former president, CEO, and chief compliance officer (collectively, Respondents).  Without admitting or denying the Commission's findings, Respondents have consented to the entry of the Order, which finds that from 2006 to March 2008, Respondents knowingly and substantially assisted Tuco Trading, LLC, a firm that provided day-trading capability to its customers and that was run by a registered representative of GLB Trading. The Order further finds that through Tuco's accounts at GLB Trading, Tuco effected its customers' securities transactions and received commissions on such trading but that it was not registered with the Commission as a broker-dealer. The Order also finds that Respondents knew of Tuco's activities and provided it with substantial assistance by allowing Tuco to operate through GLB Trading; helping Tuco solicit new customers; structuring Tuco's operations; and loaning funds so that Tuco could meet day-trading calls. As a result of the conduct described above, the Order finds that Respondents willfully aided and abetted and caused Tuco's violations of Section 15(a) of the Securities Exchange Act of 1934 (Exchange Act).

GLB Trading has been censured, and its registration with the Commission as a broker-dealer has been revoked. Respondents have also been ordered to pay disgorgement of $216,507.00, and prejudgment interest of $4,163.00 for a total of $220,670.00, which obligation is jointly and severally held by GLB Trading and Lechman. Lechman has also been barred from association with any broker or dealer, with a right to reapply for association after three (3) years from the date of the Order, and has been ordered to pay a $75,000.00 civil penalty. 

http://lawprofessors.typepad.com/securities/2009/10/sec-revokes-registration-of-brokerdealer-for-assisting-daytrading-firm.html

SEC Action | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a5bb7962970b

Listed below are links to weblogs that reference SEC Revokes Registration of Broker-Dealer For Assisting Day-Trading Firm:

Comments

Post a comment