BROKER NAILED FOR $250K. BROKER TIMARY DELORME FINED IN PUMP AND DUMP.
The SEC (Securities and Exchange Commission) (SEC) announced that Wedbush Securities Inc. will pay a $250,000 penalty and has agreed to be censured to settle its failure to supervise charge concerning a “pump and dump” scheme by its broker, Timary Delorme.
The SEC stated: “Wedbush ignored numerous red flags indicating that one of its registered representatives was involved in a long-running pump-and-dump scheme targeting retail investors. Wedbush conducted two flawed and insufficient investigations into the registered representative’s conduct, and failed to take appropriate action.”
The Securities and Exchange Commission (SEC) charged Wedbush Securities Inc. with failing to supervise former broker Timary Delorme (CRD# 736418) and red flags concerning a pump-and-dump scheme by its broker, Delorme. The SEC stated that Delorme was part of a fraudulent trading scheme for a penny stock.
Wedbush conducted two insufficient investigations into Delorme previously but took no action, including a customer email email alerting Wedbush of the scheme and FINRA customer complaints.
Delorme was barred from association with a broker, dealer, investment adviser, municipal securities dealer, NRSRO, or transfer agent.
Delorme was fined $50,000.
Delorme has been accused in three customer complaints between 2012 and 2017 previously.
Wedbush Securities may be liable for losses suffered by its customers because of its failure to supervise.
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Bankrupt and other estates for return of assets taken through fraud, including claims against Registered Investment Advisors. Anthony M. Abraham, Esq., PC is experienced in churning and unauthorized trading claims. If you were victimized and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@AbrahamAttorneys.com.