In the Matter of Alexander Capital, L.P.
Admin. Proc. File No. 3-18561
On June 29, 2018, the Commission instituted and simultaneously settled administrative proceeding (the “Order”) against Alexander Capital, L.P. (the “Respondent”). In the Order, the Commission found that from 2012 through 2014, the Respondent failed to reasonably implement policies and procedures and permitted a lax compliance environment in which its registered representatives (“RRs”) were not monitored or disciplined, procedures were not followed, and indications of potential misconduct were not acted upon by two supervisors of three RRs. As a result, three RRs violated the antifraud provisions of the federal securities laws in their handling of customer accounts without anyone at Alexander Capital preventing or detecting their violations. The Commission ordered, and the Respondent has paid $193,774.86 in disgorgement, $23,436.78 in prejudgment interest, and $193,774.86 in civil penalties. In the Order, the Commission also created a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty, along with the disgorgement and prejudgment interest, can be distributed to those investors harmed by the Respondent’s conduct described in the Order. See the Commission’s Order: Release No. 34-83562.
On July 15, 2019, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-86382.
For more information, please contact the Commission:
Office of Distributions