British brokerage paying $25M to settle SEC charges

British brokerage paying $25M to settle SEC charges
ICAP Securities USA, the U.S. division of a big British brokerage, agreed Friday to pay $25 million to settle federal regulators' charges that it deceived customers by displaying thousands of phony trades in U.S. Treasury securities on its screens.
DEC 18, 2009
By  Jeff Nash
The Securities and Exchange Commission announced the settlement of civil fraud charges with ICAP Securities USA, which it described as the U.S. subsidiary of the world's largest broker of trades between banks, ICAP PLC of Britain. Inter-dealer brokers, as they are called, match buyers and sellers in over-the-counter markets for securities such as U.S. Treasuries and mortgage-backed bonds. ICAP Securities USA, based in Jersey City, N.J., neither admitted nor denied the SEC's allegations but did agree to refrain from future violations of the securities laws. The firm was censured and agreed to pay $24 million in civil penalties and $1 million in restitution. It also agreed to hire an independent consultant to review its internal controls and compliance procedures, and its trading activities. The censure brings the possibility that the firm could face a stiffer sanction if the alleged infraction is repeated. The SEC had alleged that from December 2004 through December 2005, ICAP displayed thousands of fictitious trades in Treasuries on its screens, and disseminated false trade information into the market to attract customers' attention and trades. The SEC also reached settlements with five ICAP brokers, which it had accused of aiding and abetting the firm's conduct, and two senior executives accused of failing to adequately supervise the brokers. The executives are Gregory Murphy, ICAP Securities' chief operating officer; and Ronald Purpora, the former president of ICAP North America and a member of ICAP PLC's global executive management group. Murphy and Purpora each agreed to pay a $100,000 civil fine and to a three-month suspension from working as supervisors at any brokerage firm. The neither admitted nor denied the SEC's allegations. The brokers are: Peter Agola, Ronald Boccio, Kevin Cunningham, Donald Hoffman and Anthony Parisi. They each agreed to pay a $100,000 civil fine except for Hoffman, who retired in 2006, who is paying a $50,000 fine. The five also agreed to a three-month suspension from working for any brokerage firm. The brokers neither admitted nor denied the SEC's allegations but did agree to refrain from future violations of the securities laws.

Latest News

Younger Americans are changing the dynamics of IRAs
Younger Americans are changing the dynamics of IRAs

Millennials, Gen Zs are not following the preferences of older generations.

How does your schedule stack up against a typical advisor?
How does your schedule stack up against a typical advisor?

Report reveals how advisors in RIAs, broker-dealers split their time.

Global stock selloff continues into a third day
Global stock selloff continues into a third day

Tariffs are the focus as risk aversity intensifies.

Gold sets new record at $3,077 as trade war fears rise
Gold sets new record at $3,077 as trade war fears rise

Havens are in demand as investors weigh likely impact of tariffs.

Why value stocks are beating growth stocks right now
Why value stocks are beating growth stocks right now

Investor concerns have triggered the rotation, although 'the bar is low'.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve