SEC Charges Broker-Dealer and CFO with Net Capital Rule Violations

ADMINISTRATIVE PROCEEDING
File No. 3-20013

September 17, 2020 - The Securities and Exchange Commission today announced settled charges against Navian Capital Securities, LLC, a Cincinnati-based broker-dealer, and its CFO, Robert P. Jenkins, for violating the net capital rule.

According to the SEC's order, between July 2018 and April 2019, Navian repeatedly failed to maintain sufficient liquid assets to meet all obligations to customers and counter-parties, as required by the net capital rule. The order finds that Navian incorrectly calculated its net capital position by failing to deduct from its net worth certain short-term cash contributions. The order also finds that Jenkins prepared the erroneous net capital calculations and filed required quarterly FOCUS reports that contained the erroneous calculations.

The SEC's order finds that Navian willfully violated Sections 15(c)(3) and 17(a)(1) of the Securities Exchange Act of 1934 and Rules 15c3-1, 17a-3 and 17a-5 thereunder, and that Jenkins caused Navian's violations of these provisions. Without admitting or denying the SEC's findings, Navian consented to a cease-and-desist order, a censure, and a $40,000 penalty. Jenkins, without admitting or denying the SEC's findings, consented to a cease-and-desist order and a $10,000 penalty.

The SEC's investigation was conducted by Peter Senechalle of the Chicago Regional Office, and was supervised by Amy Flaherty Hartman. The examination that led to the investigation was conducted by the SEC's Office of Compliance Inspections and Examinations' broker-dealer examination program in Chicago.