Defendant Name: Capstone Capital Markets

Defendant Type: Subsidiary of Public Company
Public Company Parent: Huntington Bancshares, Inc.
SIC Code: 6020
CUSIP: 44615010

Initial Case Details

Legal Case Name In the Matter of The Huntington Investment Company, Huntington Securities, Inc., and Capstone Capital Markets LLC
First Document Date 09-Feb-2024
Initial Filing Format Administrative Action
File Number 3-21853
Allegation Type Broker Dealer

Violations Alleged

Other
• Failure to supervise under Section 15(b)(4)(E) Exchange Act

Resolutions

First Resolution Date 09-Feb-2024

Related Documents:

34-99504 09-Feb-2024 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 and 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 February 9, 2024, the SEC instituted administrative and cease-and-desist proceedings against The Huntington Investment Company, Huntington Securities, Inc. , and Capstone Capital Markets LLC, stating: "From at least January 2019, Huntington employees sent and received off-channel communications that related to HIC’s, HSI’s and Capstone’s broker-dealer businesses and with respect to HIC’s investment advisory business, off-channel communications related to recommendations made or proposed to be made and advice given or proposed to be given. Respondents did not maintain or preserve the substantial majority of these written communications. Respondents’ failures were firm-wide and involved employees at various levels of authority. As a result, Respondents violated Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder and HIC violated Section 204 of the Advisers Act and Rule 204- 2(a)(7) thereunder."
2024-18_3-21853 09-Feb-2024 Press Release--Administrative Proceeding
Sixteen Firms to Pay More Than $81 Million Combined to Settle Charges for Widespread Recordkeeping Failures; The Huntington Investment Company self-reported and was ordered to pay lower civil penalty than other firms
On February 9, 2024, the SEC "announced charges against five broker-dealers, seven dually registered broker-dealers and investment advisers, and four affiliated investment advisers for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications."

Other Defendants in Action:

The Huntington Investment Company
Huntington Securities, Inc.