SEC Charges Dual Registrant With Failing to Respond to Red Flags of Insider Trading

The SEC charged a broker-dealer/investment adviser with failing to maintain controls to prevent one of its employees from insider trading, and tipping others, as to information concerning a public company that had been provided to one of the representative's customers. There are a variety of violations are cited in the attached order, most notably the failure of the firm to respond to the red flags of the event or to co-ordinate internally.

See: SEC Order; SEC Press Release.