SEC Charges Transfer Agent and Principal for Failure to Respond to Commission Requests for Records
July 10, 2019
File No. 3-19243
July 10, 2019 - The Securities and Exchange Commission today announced administrative cease-and-desist proceedings against Fidelity Transfer Services, Inc. (Fidelity), a registered transfer agent based in Bonita, California, and its principal, Ruben Sanchez, of Chula Vista, California, for allegedly failing to comply with Commission requests for required records on multiple occasions, neglecting to make numerous required Commission filings, and providing false and misleading information to the Commission in the filings that were made.
According to the Commission's order, the Division of Enforcement alleges that, since 2014, Fidelity has failed to comply with three separate Commission requests for required transfer agent records, including, most recently, a Commission subpoena for documents and testimony in connection with an ongoing investigation. In each instance, Sanchez was made aware of the Commission requests, including through phone conversations with Commission staff, but nevertheless did not produce any of the requested records. Fidelity has also failed to maintain accurate location and contact information in its registration form and has failed to consistently make its annual required filings with the Commission. Furthermore, filings that Sanchez submitted on behalf of Fidelity have included false statements of fact.
The order instituting the proceeding charges Fidelity with willfully violating the registration, filing, and production provisions of the federal securities laws applicable to transfer agents, Sections 17(a)(1), 17(a)(3), 17(b)(1), and 17A(d)(1) of the Securities Exchange Act of 1934 and Rules 17Ac2-1(c) and 17Ac2-2(a) thereunder. The order also charges Sanchez with willfully aiding and abetting and causing Fidelity's violations.
This matter will be scheduled for a public hearing before the Commission.
The SEC's investigation, which is continuing, has been conducted by Patricia Pei and supervised by Spencer E. Bendell. The Division of Enforcement's litigation will be conducted by Lynn M. Dean and supervised by Amy Longo.