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
