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

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.