Defendant Name: Direct Transfer LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Issuer Direct Corporation
SIC Code: 7372
CUSIP: 46520M20

Initial Case Details

Legal Case Name In the Matter of Direct Transfer LLC
First Document Date 16-Dec-2024
Initial Filing Format Administrative Action
File Number 3-22358
Allegation Type Other

Violations Alleged

Other
• Section 17A(d) Exchange Act; Rule 17Ad-12 Exchange Act

Resolutions

First Resolution Date 16-Dec-2024
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

34-101924 16-Dec-2024 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 17A and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On December 16, 2024, the SEC instituted administrative and cease-and-desist proceedings against Direct Transfer LLC, stating: "Between at least January 2020 and February 2024 (the “Relevant Period”), Direct Transfer, a registered transfer agent, failed to assure that client funds in its custody and possession were adequately safeguarded against loss, unauthorized disposition, and misappropriation by failing to perform periodic reconciliations of its client escrow accounts and failing to take steps to resolve discrepancies or other problems. As a result of these failures, during the Relevant Period, significant variances existed between the actual balances of Direct Transfer’s client escrow accounts compared to the expected balances of those accounts listed in the firm’s internal records."