Massachusetts Brings Enforcement Actions Against "Roaring Kitty's" Employer

A broker-dealer entered into settlements (see here and here) with the state of Massachusetts for, among other compliance-related charges, state registration, and supervisory violations. The enforcement action garnered public attention because the firm had employed Keith Gill, better known as "Roaring Kitty," the primary proponent of buying GameStop.

One Consent Order concerned the firm's failure to register with the state all of its representatives who made securities sales within the state and the supervisors of those representatives. The number of representatives who were not registered was substantial (304), as was the number of supervisors of those representatives (164), some of whom were not themselves registered in the state. The amount of improper commissions received was less than $15,000 for the representatives and approximately $425,000 for the unregistered supervisors. The Consent Order noted that the firm failed to include in its procedures manual a