By Jaclyn Jaeger2021-02-03T17:04:00+00:00
The Securities and Exchange Commission (SEC) on Tuesday charged two former executives of WageWorks, an employee benefits provider, with making false and misleading statements and omissions that resulted in the improper recognition of $3.6 million in revenue.
Without admitting or denying the SEC’s findings, former Chief Executive Officer Joseph Jackson agreed to pay a $75,000 penalty and reimburse WageWorks for $1.9 million in incentive-based compensation and profits from the sale of company stock. Former Chief Financial Officer Colm Callan agreed to pay a $100,000 penalty and reimburse WageWorks for $157,590 in incentive-based compensation.
The details: In March 2016, WageWorks signed a contract with a large client to process benefits claims for certain public-sector employees. On multiple occasions after signing the contract, the client’s employees informed WageWorks it did not intend to pay for certain development and transition work
Tech
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December 17, 2020
On Thursday, the Securities and Exchange Commission (SEC) announced that Robinhood Financial LLC, which runs the popular Robinhood securities trading app, has agreed to pay $65 million to settle charges relating to its “repeated misstatements that failed to disclose the firm’s receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonable available terms to execute customer orders.”
“There are many new companies seeking to harness the power of technology to provide alternative ways for people to invest their money,” Erin E. Schneider, Director of the SEC’s San Francisco Regional Office, said. “But innovation does not negate responsibility under the federal securities laws.”
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Washington, D.C. (Newsfile Corp. - December 17, 2020) - The Securities and Exchange Commission today charged Robinhood Financial LLC for repeated misstatements that failed to disclose the firm s receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonably available terms to execute customer orders. Robinhood agreed to pay $65 million to settle the charges.
According to the SEC s order, between 2015 and late 2018, Robinhood made misleading statements and omissions in customer communications, including in FAQ pages on its website, about its largest revenue source when describing how it made money - namely, payments from trading firms in exchange for Robinhood sending its customer orders to those firms for execution, also known as payment for order flow. As the SEC s order finds, one of Robinhood s selling points to customers was that trading was commission free, but due in large part to its unu
Tough Week: SEC Charges Robinhood with Misleading Customers, Settles with $65 Million Penalty
The same week that
Robinhood took a broadside hit by the state of Massachusetts securities regulator, the digital investment platform has now been charged by the Securities and Exchange Commission (SEC) with misleading customers on how it generates revenue. Robinhood strategically settled the charges with a $65 million penalty without admitting or denying the SEC’s findings, according to a statement by the Commission.
The SEC alleged that Robinhood Financial LLC failed to disclose the firm’s receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonably available terms to execute customer orders.
FOR IMMEDIATE RELEASE Washington D.C., Dec. 17, 2020
The Securities and Exchange Commission today charged Robinhood Financial LLC for repeated misstatements that failed to disclose the firm’s receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonably available terms to execute customer orders. Robinhood agreed to pay $65 million to settle the charges.
According to the SEC’s order, between 2015 and late 2018, Robinhood made misleading statements and omissions in customer communications, including in FAQ pages on its website, about its largest revenue source when describing how it made money – namely, payments from trading firms in exchange for Robinhood sending its customer orders to those firms for execution, also known as “payment for order flow.” As the SEC’s order finds, one of Robinhood’s selling points to customers was that trading was “commission free,�