Defendant Name: First Southwest Company, LLC

Defendant Type: Subsidiary of Public Company

Document Reference: 34-85433

Document Details

Legal Case Name In the Matter of First Southwest Company, LLC
Document Name Order Establishing Fair Fund and Directing Payment of Funds
Document Date 28-Mar-2019
Document Format Administrative Proceeding
File Number 3-17154
Allegation Type Municipal Securities & Public Pensions
Document Summary The SEC stated: "IT IS HEREBY ORDERED that: A. Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, a Fair Fund is established so that the Net Civil Money Penalty can be added to the disgorgement and prejudgment interest paid by First Southwest for the benefit of harmed investors; and B. The Commission staff is directed to pay the collected disgorgement, prejudgment interest, and the Net Civil Money Penalty, plus accrued interest, to the Trustee for distribution to affected bondholders. Payment shall be made payable to The Bank of New York Mellon Trust Company, N.A."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Fair Funds
Monetary Penalties:

Disgorgement

Individual:     $120,000.00 Shared:    

Civil Penalty

Individual:     $50,000.00 Shared:    

Pre-Judgment Interest

Individual:     $22,400.00 Shared:    

Related Documents:

34-77300 07-Mar-2016 Administrative Proceeding
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
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."
2016-37_First Southwest 07-Mar-2016 Press Release--Administrative Proceeding
SEC Charges Rhode Island Agency and Wells Fargo With Fraud in 38 Studios Bond Offering
On March 7, 2016, the SEC announced that it "charged a Rhode Island agency [RIEDC] and its bond underwriter Wells Fargo Securities with defrauding investors in a municipal bond offering to finance startup video game company 38 Studios." The SEC stated that: "In a separate administrative proceeding, the RIEDC's financial advisor for the bond offering -- First Southwest Company LLC -- agreed to settle charges that it violated MSRB rules by failing to document in writing the scope of the services the firm was providing in the bond offering until seven months after the financial advisory relationship began."

Related Actions:

SEC v. Rhode Island Commerce Corporation (f/k/a Rhode Island Economic Development Corporation), Wells Fargo Securities, LLC, Peter M. Canada, Keith W. Stokes, and James Michael Saul
Wells Fargo Securities LLC
Rhode Island Commerce Corporation
James Michael Saul
Keith W. Stokes
Peter M. Cannava