U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25793 / July 28, 2023

SEC Charges New York Registered Representative with Fraud

The Securities and Exchange Commission today announced charges against Clarice Saw, a former registered representative at a New York broker-dealer, for allegedly defrauding a customer of approximately $2.4 million.

The SEC's complaint alleges that between December 2021 and March 2022, while Saw was associated with a registered broker-dealer, she engaged in a fraudulent scheme and misappropriated approximately $2.4 million from an elderly brokerage customer. The complaint also alleges that Saw liquidated all of the customer's securities holdings without the customer's consent, and then transferred all of the investment proceeds to her own personal bank and brokerage accounts. The complaint further alleges that Saw used a portion of the misappropriated funds to pay for her personal expenses, including approximately $100,000 in car and mortgage payments and thousands of dollars of cash withdrawals, and that Saw used additional misappropriated funds to purchase securities in her own personal brokerage account.

The SEC's complaint, filed in the United States District Court for the Southern District of New York, charges Saw with violating the antifraud provisions of Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.

The SEC's investigation was conducted by Sheldon Mui, Jack Kaufman, Neil Hendelman, and Gerald A. Gross, and supervised by Tejal D. Shah, all of the New York Regional Office. The SEC's litigation will be led by Mr. Kaufman.