March 27, 2018 / 8:22 PM / 24 days ago

U.S. SEC charges Wedbush Securities in employee’s alleged fraud

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission has charged Wedbush Securities Inc for failing to supervise an employee after the broker-dealer ignored red flags that the employee was involved in a “long-running pump-and-dump scheme targeting retail investors,” the agency said in a statement on Tuesday.

It said Wedbush ignored multiple signs of employee Timary Delorme’s fraud, including a customer email detailing her involvement in the scheme. An administrative law judge will hear the case.

A separate order found Delorme violated anti-fraud provisions of federal securities laws, requiring her to pay a $50,000 penalty and imposing restrictions, the statement added.

Reporting by Mohammad Zargham; Editing by Eric Beech

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