The Securities and Exchange Commission (SEC) on Thursday charged Cantor Fitzgerald LP, a global financial services firm led by one of President-elect Donald Trump's Cabinet nominees, with alleged violations of federal securities laws.
The SEC has indicted a financial company on charges that it caused two special purpose acquisition companies (SPACs) it controlled to make “misleading statements to investors ahead of their initial public offerings (IPOs).” According to To Thursday's press release. Cantor Fitzgerald agreed to settle the SEC charges by paying a $6.75 million civil penalty.
On November 19, President Trump selected Cantor Fitzgerald CEO Howard Lutnick to serve as Secretary of Commerce. Lutnick was also co-chair of Trump's transition team, where he “created the most sophisticated processes and systems to help establish the greatest administration America has ever seen,” the president-elect announced. argued in. (Related: 'Just another weaponized institution': Ramaswamy, Musk slam SEC after diversity policy shift)
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“Cantor Fitzgerald has not identified any potential merger targets despite having substantial discussions with several private companies (including SPAC partners) regarding the possibility of a merger. , repeatedly stated in public filings that they were not close to doing so, and misled investors about important investment considerations, “and ultimately merged,'' Sanjay Wadhwa, acting director of the SEC's Division of Enforcement, said in a press release. “This enforcement action reflects the straightforward proposition that any disclosures regarding substantive discussions with potential targets must be substantively accurate.”
Cantor Fitzgerald did not confirm or deny the order's findings, according to a press release. SEC Commissioner Mark Ueda said: statement of opposition On Thursday, he maintained that the alleged misstatements and omissions were not material.
The president-elect announced on Dec. 4 that he would nominate Paul Atkins as SEC chairman, as noted by Truth Social. post Atkins said it would stimulate capital markets that “response to investor needs.” Atkins is a former SEC commissioner, CEO and founder. Patomac Global Partnersa risk management consulting firm.
Prior to Trump nominating Atkins to head the SEC, current SEC Chairman Gary Gensler announced in November that he would resign when Trump returns to the Oval Office in January 2025. expected He assumed the position of SEC Chairman on April 17, 2021.
“No investors were harmed by the issues described in the order,” Cantor Fitzgerald said in a statement shared with the Daily Caller News Foundation. “We are pleased to be able to conclude this transaction by mutual agreement with the SEC.”
An SEC spokesperson told DCNF, “We decline to comment on this matter beyond public documents and press releases.”
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