SEC Backs Fine For Compliance Chief Who Missed Red Flags

Law360 (May 22, 2020, 3:52 PM EDT) -- The U.S. Securities and Exchange Commission told the D.C. Circuit on Thursday that a former broker-dealer compliance chief was sanctioned not for knowing about a new hire's ties to a barred broker, but for failing to investigate them "in the face of red flags."

The agency is pushing back on Thaddeus J. North's bid to have the appellate court toss $45,000 in fines and other sanctions handed down by the Financial Industry Regulatory Authority, which found in a 2013 disciplinary action that he'd failed to report a Southbridge Investment Group LLC employee's payments to a disqualified broker's firm.

North contends that...

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