SEC v. Salomon Whitney LLC, Admin. Proc. File No. 3-21762
On September 28, 2023, the Commission instituted and simultaneously settled administrative proceedings (the “Order”) against Salomon Whitney LLC (“SW Financial” or the “Respondent”). In the Order, the Commission found that from at least August 2018 through June 2022 (“the Relevant Period”), SW Financial, a registered broker-dealer, operating through several of its registered representatives, recommended a short-term, high-volume investment strategy to at least sixteen of its customers without a reasonable basis. These registered representatives recommended and executed over 2,000 trades in these customers’ accounts during the Relevant Period without regard for the high transaction costs incurred by the customers. As a result of this high volume of recommended transactions and their attendant commissions and fees, it would have been virtually impossible for these customers to achieve a profit in their accounts. The Commission ordered the Respondent to pay $216,896.00 in disgorgement and $19,277.00 in prejudgment interest, for a total of $236,173.00, to the Commission (the “Distribution Fund”).
The Distribution Fund consists of the $236,173.00 collected from the Respondent. The Distribution Fund has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Distribution Fund.
On April 3, 2024, 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. 34-99896.
On September 23, 2024, the Commission issued an order approving the disbursement of $240,079.00 from the Fair Fund for distribution to eligible claimants. See the Commission’s Order: Release No. 34-101136
For more information, please contact the Commission:
Office of Distributions
Last Reviewed or Updated: April 15, 2024