Howard Lutnick, Chairman and CEO of BGC Partners, speaks at the Piper Sandler Global Exchange and FinTech Conference in New York City, USA on June 8, 2022.
Brendan McDiarmid | Reuters
WASHINGTON — securities and exchange commission Thursday indicts global financial services company cantor fitzgerald and violation of law Relates to regulatory disclosures made by so-called blank check companies before they raise funds from the public.
Chairman and CEO of Cantor; howard lutnickHe was recently nominated by President-elect Donald Trump to be Secretary of Commerce. Lutnick serves as co-chair of Trump’s transition team.
Cantor, in order to resolve the SEC charges. Civil fine of $6.75 million and agrees not to violate the securities laws at issue in this case.
The company did not admit or deny the charges related to certain anti-fraud and agency provisions of the federal securities laws.
Cantor’s settlement mirrors another blank check company’s $18 million settlement. Digital World Acquisition Corporationagreed to pay the SEC in July 2023 after being indicted on fraud charges for failing to disclose to investors that DWAC was in extensive merger talks with President Trump’s then-private social media company. . trump media. DWAC merged with Trump Media earlier this year.
It was unclear whether President-elect Trump’s transition review team was aware of the SEC’s investigation into Cantor when he announced Thursday night that he had selected Lutnick to be secretary of commerce.
Cantor Fitzgerald chairman and chief executive officer gestures and speaks at a rally for Republican presidential candidate and former U.S. president Donald Trump at Madison Square Garden in New York, USA, on October 27, 2024. Mr. Howard Lutnick, CEO.
Andrew Kelly Reuter
of SEC order The report released Thursday alleges that Cantor contacted or had substantive discussions with two blank check companies, also known as SPACs, with potential merger targets prior to the SPACs’ initial public offerings. It was found that the company had made false denials in documents submitted to regulatory authorities.
A SPAC is a shell company that does not have an underlying business until it merges with the target company in which it operates.
The two SPACs managed by Cantor’s team of executives are: $750 million From IPO investors before merging with smart glasses maker view and satelogicThe company provides satellite imagery and geospatial data, the SEC said.
The SEC said a team of Cantar executives and subsidiary employees searched for companies with which the two SPACs could merge and had “substantive discussions” with potential targets. These discussions took place before the blank check company registered and launched its IPO.
View’s merger agreement with Cantor SPAC CF Finance Acquisition Corp. was announced in November 2020. Satellogic’s merger agreement with CF Acquisition Corp. V was announced in July 2021.
“This enforcement action reflects the straightforward proposition that any disclosures about substantive discussions with potential targets must be substantively accurate,” he said. Sanjay WadhwaActing Director of the SEC Enforcement Division on Thursday.
“Cantor Fitzgerald has not identified any potential merger targets despite having substantial discussions with several private companies (including SPAC partners) regarding the possibility of a merger. , repeatedly stated in public filings that they were not approached, and misled investors about material investment considerations that ultimately led to the merger,” Wadhwa said in a statement.
“No investors have been harmed by the issues described in the order,” Kantar spokeswoman Erica Chase said in an email to CNBC.
“We are pleased to be able to conclude this matter by mutual agreement with the SEC,” Chase said.
The Trump administration did not immediately respond to a request for comment on the story.
