SEC Staff Continues To Issue “Bad Boy” Waivers

The secret to obtaining a “bad boy” waiver from the Securities and Exchange Commission is to show:

  • the bad act did not involve an intent to defraud;
  • the misconduct did not involve the sale of securities;
  • the actor has taken remedial steps to fix the bad act; and
  • the disqualification (here, of a broker) will result in a material and disproportionate impact on that person’s employer, its affiliates, issuers of private placements,and “most importantly,” their customers.

Here, the subject had failed to disclose realty tax liens to FINRA and was subject to an order of suspension and the payment of a $15,000 fine.

See SEC No-Action Letter: Aegis Capital Corp., September 14, 2015.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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