On Sep. 28, SEC charged BD for reporting suspicious trading.
- Brokerage COR Clearing to exit penny stock deposit business, and pay a fine.
Alleged Violations
- From 2015- 2016, COR cleared a large amount of penny stock for customers.
- 193 client accounts deposited large blocks of low-priced securities, with firm.
- The clients then quickly sold the same securities and withdrew cash proceeds.
- Some of the customers engaged in suspicious pattern with multiple securities.
- Cor did not report suspicious sales of penny stock shares of millions of dollars.
- B/Ds must file SARs for trades suspected of fraud, no apparent lawful purpose.
Sanctions
- COR cannot sell penny stocks with narrow exceptions, and pay $800k penalty.
