(HedgeCo.Net) The Securities and Exchange Commission has charged New York-based broker-dealer AOC Securities LLC, and its former chief executive officer, Ronaldo Gonzalez, with failing to supervise an AOC broker who provided inflated price quotes for certain securities to a significant customer of AOC.<\/p>\n
According to the SEC\u2019s orders, Frank Dinucci Jr., a broker at AOC, provided inflated price quotes to a New York-based investment adviser, Premium Point Investments LP. The orders find that PPI traders dictated to Dinucci the prices at which he should value certain mortgage-backed securities in PPI funds\u2019 portfolios. In return, the PPI traders promised to send securities trades to AOC. Though both AOC and Gonzalez knew Dinucci was providing price quotes to PPI on behalf of AOC, they failed to establish or implement policies or procedures reasonably designed to prevent and detect Dinucci\u2019s misconduct. The SEC previously charged Dinucci, PPI, and certain of PPI\u2019s founders, partners, and employees in connection with the fraudulent valuation scheme. AOC withdrew its registration as a broker-dealer at the end of 2018, during the course of the SEC\u2019s investigation.<\/p>\n
\u201cTo guard against the fraudulent valuation of assets, it is essential that broker-dealers and their senior executives reasonably supervise brokers who provide price quotes to hedge fund customers for valuation purposes,\u201d said Daniel Michael, Chief of the SEC Division of Enforcement\u2019s Complex Financial Instruments Unit. \u201cDeregistering with the Commission in the midst of an enforcement investigation will not enable such firms to evade liability.\u201d<\/p>\n
Without admitting or denying the SEC\u2019s findings, AOC and Gonzalez agreed to pay penalties of $250,000 and $40,000, respectively. The SEC\u2019s orders also censure AOC and impose a 12-month supervisory bar against Gonzalez.<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission has charged New York-based broker-dealer AOC Securities LLC, and its former chief executive officer, Ronaldo Gonzalez, with failing to supervise an AOC broker who provided inflated price quotes for certain securities to a significant […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-70635","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=70635"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70635\/revisions"}],"predecessor-version":[{"id":70636,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70635\/revisions\/70636"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=70635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=70635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=70635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}