Two broker-dealers settled separate SEC charges (see here and here) for improperly obtaining the pre-release of American Depositary Receipts ("ADRs") that the firms should have been aware were not backed by foreign shares or obtaining the shares from other dealers.
To settle the charges with the SEC, Cantor Fitzgerald & Co. agreed to pay (i) $359,000 in disgorgement of ill-gotten gains, (ii) $88,000 in prejudgment interest, and (iii) a $200,000 penalty.
To settle the charges with the SEC, BMO Capital Markets Corporation agreed to pay (i) $2.2 million in disgorgement of ill-gotten gains, (ii) $546,000 in prejudgment interest, and (iii) a $1.2 million penalty.
- SEC Order: Cantor Fitzgerald & Co.
- SEC Order: BMO Capital Markets Corporation
- SEC Press Release: Cantor Fitzgerald and BMO Capital Charged for Improper Handling of ADRs
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.