Defendant Name:
First Southwest Company, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Hilltop Holdings, Inc.
SIC Code:
6022
CUSIP:
43274810
Document Reference:
34-77300
Document Details
Legal Case Name
In the Matter of First Southwest Company, LLC
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b), 15B(c)(2) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
07-Mar-2016
Document Format
Administrative Proceeding
Allegation Type
Municipal Securities & Public Pensions
Document Summary
On March 7, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against First Southwest Company, LLC. According to the SEC: "These proceedings arise out of violations by First Southwest, a broker-dealer and municipal securities dealer, of the fair dealing and financial advisory agreement rules of the Municipal Securities Rulemaking Board ('MSRB') in connection with financial advisory services rendered by First Southwest to its municipal client, the Rhode Island Economic Development Corporation ('RIEDC') (now known as the Rhode Island Commerce Corporation), relating to a private placement offering of municipal securities on October 22, 2010 (the '2010 bond issuance'). From March 2010 to November 2010, First Southwest rendered financial advisory services to the RIEDC in connection with the 2010 bond issuance. First Southwest's relationship with the RIEDC for the 2010 bond issuance, however, was not memorialized by a written agreement listing the specific services or tasks that First Southwest would provide in connection with the 2010 bond issuance until seven months into the financial advisory relationship. By rendering financial advisory services to the RIEDC for seven months without a written financial advisory agreement, First Southwest violated MSRB Rule G-17, MSRB G-23(c) and Section 15B(c)(1) of the Exchange Act."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Disgorgement
Individual:
$120,000.00
Shared:
Civil Penalty
Individual:
$50,000.00
Shared:
Pre-Judgment Interest
Individual:
$22,400.00
Shared:
