AG James Imposes $12.5 Million Penalty On Brokerage Firms For Martin Act Violations

Posted to Applied Web NY on Wed, 10/02/2019 - 13:33

NEW YORK – Attorney General Letitia James announced today that brokerage firms BGC FINANCIAL LP (“BGC”) and GFI SECURITIES LLC (“GFI”) have agreed to pay penalties totaling $12.5 million dollars to the Attorney General’s Office for their violations of the Martin Act. Both brokerage firms admitted that between January 1, 2014 and December 31, 2015, brokers of foreign exchange currency options (FX options) for emerging market currencies employed fraudulent practices to solicit and accept orders from New York traders to buy and sell FX options. Pursuant to their agreements, both firms must immediately implement remedial procedures, verified by an independent monitor who will report to the Attorney General’s Office.

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