SEC Accuses Cantor Fitzgerald, Founded by Trump’s Commerce Secretary Pick Lutnick, of Violating Securities Laws

The U.S. Securities and Exchange Commission (SEC) has accused global financial services firm Cantor Fitzgerald of violating laws related to regulatory disclosures made by companies before raising money from the public, known as blank check companies. Cantor's Chairman and CEO Howard Lutnick was recently nominated by elected President Donald Trump for the Department of Commerce. Cantor has agreed to resolve the SEC's allegations by paying a civil penalty of $6.75 million and committing to refrain from violating securities laws relevant to the case. The firm did not admit or deny the allegations related to specific anti-fraud and proxy provisions of federal securities laws.

Cantor's settlement follows another blank check company, Digital World Acquisition Corp, which agreed in July to pay the SEC $18 million after being accused of fraud for failing to disclose that DWAC was in extensive merger talks with Trump Media, then Trump’s private social media company. DWAC merged with Trump Media earlier this year. It remains unclear if Trump’s transition team was aware of the SEC's investigation into Cantor when he announced Lutnick's selection as Secretary of Commerce on Thursday night.