SEC Fine Suspicious Trading

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.


  • COR cannot sell penny stocks with narrow exceptions, and pay $800k penalty.