IGC Securities, Inc. v. Capital Markets Integrity Corp.

July 30, 2019SEC EN BANC CASE NO. 10-15-389IGC SECURITIES, INC., appellant, vs. CAPITAL MARKETS INTEGRITY CORPORATION, appellee.DECISIONThis is an Appeal of the Decisions dated 8 July 2015 and 13 October 2015 of the Capital Markets Integrity Corporation (CMIC), where IGC Securities, Inc. was held liable for the acts of its Trader, in violation of Article V, Section 4 (Trading for One's Personal Account), and its Associated Person, in violation of Article VI, Section 2 (Failure to Supervise an Employee) of the CMIC Rules. HTcADCRELEVANT FACTSOn 28 April 2015, the CMIC commenced its Annual Regular Audit of IGC Securities, Inc. (IGC), a Broker-Dealer.On 8 June 2015, the CMIC informed IGC that one of its traders, Ms. Doreen Mijares, had two active In-Trust-For (ITF) trading accounts ("HER-6138" and "HER-6139") in the names of each of her minor children. She and the children's father were named trustees. In addition, she had an active trading account ("MIJ-297") in her own name.On 17 June 2015, IGC submitted its written explanation, arguing that Ms. Mijares did not commit any violation and...