SEC charges Cantor Fitzgerald, led by Trump's Commerce pick, with breaking securities laws [View all]

[Nevilledog]

https://www.cnbc.com/2024/12/12/sec-cantor-fitzgerald-charges-howard-lutnick-trump-commerce-spac-.html

WASHINGTON — The Securities and Exchange Commission on Thursday charged global financial services firm Cantor Fitzgerald with violating laws related to regulatory disclosures by so-called blank-check companies before they raise money from the public.

Cantor’s chairman and CEO, Howard Lutnick, was recently nominated by President-elect Donald Trump to lead the Commerce Department. Lutnick is co-chair of Trump’s transition team.

Cantor agreed to settle the SEC’s charges by agreeing to pay a $6.75 million civil penalty and agreeing to not violate the securities laws at issue in the case.

The firm did not admit or deny the charges, which relate to certain antifraud and proxy provisions of federal securities laws.

Cantor’s settlement echoes an $18 million settlement another blank-check firm, Digital World Acquisition Corp., agreed to pay to the SEC in July 2023 after being charged with fraud for failing to disclose to investors that DWAC had extensive merger discussions with Trump’s then-private social media company, Trump Media. DWAC merged with Trump Media earlier this year.

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