SEC Bans MicroCap Broker-Dealer From Accepting Penny Stock Deposits
Last Friday, the SEC released an order making finding and imposing remedial sanctions against Windsor Street Capital, L.P. (formerly known as Meyers Associates L.P.).
According to the SEC, “On numerous occasions, from at least June 2013 to January 2016, MeyersAssociates violated Securities Act Sections 5(a) and 5(c) by facilitating the unregistered sale of hundreds of millions of penny stock shares, without performing adequate due diligence regarding the sales’ Section 5 compliance. In addition, Meyers Associates repeatedly violated Exchange Act Section 17(a), and Rule 17a-8 there under, by failing to file suspicious activity reports (“SARs”) with the Financial Crimes Enforcement Network (“FinCEN”), as required by the Bank Secrecy Act of 1970 (“BSA”)and its implementing regulations. Meyers Associates failed to file required SARs for dozens of suspicious penny stock sale transactions.“
Among other things, Windsor Street has agreed to not accept customer deposits of stock trading at less than $5.00 (“low priced securities”) in any manner (including, without limitation, deposits of certificates or transfers of shares from other broker-dealers); provided, however, that the firm may accept customer orders to buy low priced securities on the open market.
Learn more HERE.