Defendant Name: Cowen Prime Advisors LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Cowen Inc.
SIC Code: 9999
CUSIP: 22362260

Initial Case Details

Legal Case Name In the Matter of Cowen Prime Advisors LLC
First Document Date 27-Sep-2021
Initial Filing Format Administrative Action
File Number 3-20604
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 27-Sep-2021
Headline Total Penalty and Disgorgement $768,879

Related Documents:

IA-5874 27-Sep-2021 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of The Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease- and-Desist Order
On September 27, 2021, the SEC instituted settled cease-and-desist proceedings against Cowen Prime Advisors LLC stating: "These proceedings arise from breaches of fiduciary duty by registered investment adviser Cowen. From January 1, 2015 through July 31, 2021 (the “Relevant Period”), Cowen received revenue sharing payments from its unaffiliated clearing broker (the “Clearing Broker”) as a result of sweeping its advisory clients’ cash into certain money market mutual funds (“money market funds”) instead of available lower-cost money market funds for which it would not have received any revenue sharing."
IA-5874-s 27-Sep-2021 Administrative Summary
SEC Charges Investment Adviser and Orders It to Repay Clients Harmed by Undisclosed Conflicts
The SEC "announced settled charges against registered investment adviser Cowen Prime Advisors LLC for breaches of fiduciary duty arising from Cowen's receipt of undisclosed compensation in connection with cash sweep money market funds."