The Securities and Exchange Commission (SEC) Charged Cantor Fitzgerald with Violating Laws related to Disclosures by so-called Blank-Check Companies before they raise Money from the Public.
Cantor Fitzgerald's Chairman and CEO, Howard Lutnick, was recently Nominated by Trump (R) to Lead the Commerce Department. The SEC said that Cantor agreed to settle the Case by saying the Firm would Not Violate the relevant Securities Laws again, and pay a $6.75 million Civil Penalty.
Lutnick is Co-Chair of Trump's Transition Team. The Firm did Not Admit or Deny the Charges, which relate to certain Antifraud and Proxy Provisions of Federal Securities Laws.
It was unclear Thursday night, whether the Trump Transition Vetting Team was aware of the SEC's Investigation of Cantor, when Trump said that He had selected Lutnick to become Secretary of Commerce.
The SEC Order released Thursday, found that Cantor caused Two Blank-Check Companies, which are also known as SPACs, to Falsely Deny in Regulatory Filings having had Contact or Substantive discussions with potential Merger Targets before those SPACs' Initial Public Offerings. The same Charge Trump had when He was taking His Social Media Company Public.
SPACs are Shell Ccompanies that have No underlying Business before they potentially Merge with a Target Company that has Business Operations.
The Two SPACs controlled by a Team of Cantor Executives raised $750 million from Investors in IPOs before they Merged with Smart-Glass Maker View and Satellogic, the Satellite Imagery and Geospatial Data, Company, the SEC said.
The SEC said that the Team of Cantor Executives and Employees of Cantor Subsidiaries searched for potential Companies for the Two SPACs to Merge with, and had "substantive discussions" with potential Targets. Those Discussions occurred before the Blank-Check Companies were Registered and began their IPOs.
The Trump Transition did Not immediately Reply to a Request for Comment on the Case.
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