Violation Tracker Individual Record

Company: 
E*TRADE Securities
Current Parent Company: 
E-Trade Financial
Penalty: 
$2,500,000
Year: 
2014
Date: 
October 9, 2014
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Secondary Offense: 
securities issuance or trading violation
Violation Description: 

The SEC announced an enforcement action against current and former brokerage subsidiaries of E*TRADE Financial Corporation that failed in their gatekeeper roles and improperly engaged in unregistered sales of microcap stocks on behalf of their customers. E*TRADE Securities and G1 Execution Services agreed to settle the SEC?' charges by paying back more than $1.5 million in disgorgement and prejudgment interest from commissions they earned on the improper sales as well as a combined penalty of $1 million.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Securities and Exchange Commission
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
New York
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
financial services
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.