D.C. Circ. Affirms SEC Fine For Scofflaw Broker's Boss

Law360, San Francisco (November 26, 2013, 8:33 PM EST) -- The D.C. Circuit on Tuesday upheld a $310,000 U.S. Securities and Exchange Commission fine against a Prime Capital Services Inc. broker for failing to properly supervise a subordinate and allowing the subordinate to continue selling annuities even after his license had been revoked.

The appeals court rejected broker Matthew Collins' argument that the SEC's fine was arbitrary or capricious because it wasn't based on the disgorgement of ill-gotten profits, and that the fine was excessive. Collins was penalized for his involvement in Eric Brown's fraudulent sale...
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