Cantor Fitzgerald CEO Howard Lutnick is co-chair of the transition team for Donald Trump. The SEC says his firm caused two SPACs to make false statements.
The U.S. Securities and Exchange Commission (SEC) has charged Cantor Fitzgerald LP, along with its CEO Howard Lutnick and other executives, with violating securities laws. The charges stem from allegations that the firm failed to properly disclose conflicts of interest in its underwriting practices, particularly in how it managed the allocation of securities in initial public offerings (IPOs). The SEC claims that Cantor Fitzgerald did not adequately inform investors about the firm's financial incentives related to the allocation of shares, which could influence the firm's recommendations and actions. This case has drawn additional attention because Howard Lutnick was reportedly considered for a position in Donald Trump's administration as Commerce Secretary. The charges highlight ongoing concerns about transparency and fairness in the financial markets, especially in the lucrative IPO sector.
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