Defendant Name:
Direct Transfer LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Issuer Direct Corporation
SIC Code:
7372
CUSIP:
46520M20
Document Reference:
34-101924
Document Details
Legal Case Name
In the Matter of Direct Transfer LLC
Document Name
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
Document Date
16-Dec-2024
Document Format
Administrative Proceeding
Allegation Type
Other
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Civil Penalty
Individual:
$115,231.00
Shared:
