SEC Charges Broker-Dealer with Illegally Facilitating Trades for Unregistered Firm
The SEC charged Rafferty Capital Markets ("Rafferty") with illegally facilitating trades for another firm that wasn't registered as a broker-dealer.
According to the SEC Order, Rafferty agreed to serve as the broker-dealer of record in name only of approximately 100 trades in asset-backed securities that were actually introduced by an unregistered firm. While Rafferty held the necessary licenses and processed the trades, the unregistered firm managed the business. Though five of the firm's employees became registered representatives with Rafferty, they performed their work in the offices of the unregistered firm, which retained sole authority over their trading decisions and determined their compensation.