SEC Settles Fraud Charges Against Former CEO of Convergex Subsidiary
June 12, 2019
File No. 3-19198
June 12, 2019 - A federal district court in New Jersey has entered a final judgment against Anthony G. Blumberg, the former CEO of a now-defunct broker dealer subsidiary of ConvergEx Group. Today, the SEC barred Blumberg from the securities industry.
The SEC's complaint alleged that, from at least 2006 through 2011, Blumberg, a New Jersey resident, engaged in a scheme to conceal the practice of routing customer orders to a Bermuda-based affiliate to add substantial mark-ups or mark-downs on customers' trades. The SEC further alleged that, as a result of this scheme, customers paid millions of dollars in hidden fees in addition to the commissions that they paid to have their orders executed.
Blumberg consented to the entry of a final judgment that ordered him to pay a total of $557,300 in disgorgement and prejudgment interest and permanently enjoined him from violating the antifraud and registration provisions of Sections 10(b) and 15(c)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the antifraud provisions of Section 17(a) of the Securities Act of 1933. Blumberg also consented to the entry of an SEC order that barred him from the securities industry.
Prior to the entry of the final judgment, Blumberg pled guilty to conspiracy to commit securities fraud and wire fraud in a parallel criminal case.