WASHINGTON (Reuters) – Wall Avenue brokerage Cantor Fitzgerald has agreed to pay a $6.75-million penalty to settle Securities and Trade Fee fees that it misled buyers in blank-check firms it managed, the regulator stated on Thursday.
Cantor Fitzgerald didn’t instantly reply to a request for remark. In response to the SEC, Cantor neither admitted nor denied the SEC’s findings.
Clean-check corporations, or particular goal acquisition firms (SPACs) are shell firms that increase funds via an inventory with the intention of buying a personal firm and taking it public, circumventing the preliminary public providing course of.
In response to the SEC, in 2020 and 2021 a workforce of Cantor Fitzgerald executives managed and managed two SPACs that raised $750 million from buyers via IPOs forward of the SPACs’ eventual mergers with View and Satellogic.
Of their SEC filings, the SPACs stated that they had not had substantive discussions with potential takeover targets previous to their IPOs, though Cantor, performing on behalf of the SPACs, had already commenced negotiations with View and Satellogic, the SEC stated.
“This enforcement motion displays the easy proposition that any disclosures about substantive discussions with potential targets should be materially correct,” Sanjay Wadhwa, performing director of the SEC’s Division of Enforcement, stated in a press release.
