Defendant Name: E*Trade Securities, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: E*TRADE Financial Corp
SIC Code: 6211
CUSIP: 26924640

Initial Case Details

Legal Case Name In the Matter of E*Trade Securities, LLC, and G1 Execution Services, LLC
First Document Date 09-Oct-2014
Initial Filing Format Administrative Action
File Number 3-16192
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 5(a)
• Sec 5(c)

Resolutions

First Resolution Date 09-Oct-2014
Headline Total Penalty and Disgorgement $2,585,016

Related Documents:

2014-225 09-Oct-2014 Press Release--Administrative Proceeding
SEC Charges Current and Former E*Trade Subsidiaries With Improperly Selling Penny Stocks Through Unregistered Offerings
On October 9, 2014, the SEC announced that it commenced a settled enforcement action, "against current and former brokerage subsidiaries of E*Trade Financial Corporation that failed in their gatekeeper roles and improperly engaged in unregistered sales of microcap stocks on behalf of their customers."
33-9662 09-Oct-2014 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On October 4, 2014, the SEC instituted settle administrative and cease-and-desist proceedings against E*Trade Securities, LLC and G1 Execution Services, LLC. According to the SEC: "These proceedings arise from Respondents' facilitation of thousands of unregistered sales of penny stocks by three institutional customers. During various periods between March 2007 and April 2011, these customers routinely deposited to their E*Trade accounts large quantities of newly issue penny stocks that they had acquired from little known, non-reporting issuers, through private transactions. The customers claimed that these penny stocks were 'freely tradable.' Shortly after the three customers deposited these securities, the customers placed orders for Respondents to sell these securities to the public ('resales') without any registration statement being in effect."

Other Defendants in Action:

G1 Execution Services, LLC