SEC Charges Chief Compliance Officer with AML Violations
The SEC announced that John David Telfer, the former chief compliance officer and anti-money laundering (AML) officer of a registered broker-dealer, agreed to a securities industry bar to settle charges in a pending administrative and cease-and-desist proceeding related to gatekeeper failures.
The SEC instituted proceedings against Telfer and his former employer Meyers Associates, L.P. (now known as Windsor Street Capital, L.P.) on January 25, 2017. According to the SEC’s settled order as to Tefler, Meyers Associates failed to file Suspicious Activity Reports (SARs) for approximately $24.8 million in suspicious transactions. Collectively, these transactions were marked by numerous red flags suggesting that certain Meyers Associates’ customers may be involved in fraudulent “pump and dump” schemes.
According to the SEC, even in cases where one or more of these red flags was brought directly to Telfer’s attention—for example, through notification from Meyer Associates’ clearing firm—Telfer knowingly or recklessly failed to file the required SARs.
Without admitting or denying the findings in the SEC’s order, Tefler consented to an associational, industry, and penny stock bar and to pay a civil monetary penalty of $10,000.
The matter pertaining to Meyers Associates has been scheduled for a public hearing before an administrative law judge on June 26, 2017, who will prepare an initial decision stating what, if any, remedial actions are appropriate.
Contact Steve Quinlivan for more information.