Tuesday, August 12, 2014

SEC Announces Charges Against Brokerage Firm and Founder Despite Attempts to Mislead Examiners

The SEC announced charges against a New York-based brokerage firm and its founder for allegedly violating net capital requirements and falsifying books and records to conceal the capital deficiencies.

The SEC’s Division of Enforcement alleges that the individual and Crucible Capital Group attempted to disguise the firm’s extensive and repeated net capital insufficiencies by improperly off-loading its liabilities onto the books of an affiliated firm and improperly treating non-marketable stock as an allowable asset.  The individual went so far as to try to hide the company's true financial condition from SEC examiners by providing them doctored invoices that sought to mask the extent of those liabilities.  But SEC examiners and investigators successfully detected that the documents had been fabricated, and referred the matter to criminal authorities for prosecution.

The U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against the individual for obstructing the SEC’s examination.

To read more, visit: SEC Announces Charges Against N.Y. -Based Brokerage Firm and Founder Despite Attempts to Mislead Examiners
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