B-Ds slammed for fraudulent auction practices

The SEC has filed settled enforcement actions against two B-D firms and their CEOs for fraudulent auction practices.
SEP 27, 2007
The Securities and Exchange Commission today filed settled enforcement actions against two broker-dealer firms and their CEOs for fraudulent auction practices. Philadelphia-based Regional Brokers, Inc., its CEO Patrick Lubin, Cherry Hill, N.J.-based D.M. Keck & Company, Inc., its CEO Donald Michael Keck and a supervisor, Patricia Ann Sealaus were named in the action, and consented to the issuance without admitting or denying the accusations. The companies and CEOs were charged with violating and/or aiding and abetting violations of the antifraud and books and records provisions of the federal securities laws, and various Municipal Securities Rulemaking Board rules. The SEC says the firms served as broker’s brokers in auctions, providing brokerage services exclusively for municipal securities dealers, but would fraudulently place cover bids, accept late bids, disseminate fake bids in its auctions, and also failed to maintain proper books and records. The SEC imposed a $100,000 penalty against Regional and a $50,000 civil money penalty against Mr. Lubin. It also placed a permanent supervisory bar and a one-year associational bar against him, and will require Regional to certify with the SEC within six months of implementing new procedures in order to supervise the firm’s conduct. Mr. Keck received a $15,000 civil money penalty, a five-year supervisory bar and a one-year associational bar. Ms. Sealaus received a five-year supervisory bar.

Latest News

Fintech bytes: Vestmark, NDEX, and Forms Logic partnerships sharpen RIA tools
Fintech bytes: Vestmark, NDEX, and Forms Logic partnerships sharpen RIA tools

First Trust models, Schwab-linked data tools and Orion transition tech headline a busy week for RIA wealthtech

Two LPL executives jump to competitors as 2026 comes to a close
Two LPL executives jump to competitors as 2026 comes to a close

The change in senior personnel occurs days after LPL Financial tapped a new head of recruiting.

Osaic names new CMO and Empowered Independence head
Osaic names new CMO and Empowered Independence head

Former PulteGroup and Citizens executives join the broker-dealer network after a year of senior leadership departures

RIA moves: Prospera lands $600M Cornerstone team in Rochester
RIA moves: Prospera lands $600M Cornerstone team in Rochester

Independent RIA Concurrent adds over $1B across six moves, while OnePoint BFG opens West Palm Beach with a $240M team

Creative Planning adds $2.2B fee-only RIA Rockbridge in Syracuse
Creative Planning adds $2.2B fee-only RIA Rockbridge in Syracuse

The mega-RIA keeps absorbing independent fiduciary firms as Cerulli data shows the fee-only segment losing asset share

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor