SEC Charges Wedbush Securities in Connection to Alleged Pump-and-Dump Scheme

Publicly available records provided by the Securities and Exchange Commission (SEC), as well as a March 27, 2018 report by Investment News indicate that the SEC has charged Wedbush Securities in connection to alleged supervisory failures. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Wedbush Securities (CRD# 877). According to the SEC’s complaint, Wedbush failed in its supervisory duty over a broker who participated in a pump-and-dump scheme, and ignored “numerous red flags” of this conduct. The broker, Timary Delorme, allegedly “engaged in manipulative trading activity of penny stocks over multiple years,” and though Wedbush was aware of some of her activity in 2012 and 2013, its supervisory policies did not provide sufficient guidance as to how staff should investigate her activity. The SEC notes that in late 2012 and 2013, her supervisors reviewed an email describing her role in fraudulent penny stock…

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