SEC Charges Four Brokers With Defrauding Customers in $18.7 Million Scheme

The SEC charged four brokers who formerly worked on the cash desk at a New York-based broker-dealer with illegally overcharging customers $18.7 million by using hidden markups/markdowns and secretly keeping portions of profitable customer trades. According to the SEC's complaint, the brokers were employed at an interdealer broker firm.

Cross-Reference(s): Securities Act Sec. 17(a); Exchange Act Sec. 10(b) and Rule 10b-5.

View complaint in full here (links externally to SEC website). See also: Press Release