SiNtx Technologies Inc (SINT)

[boston745]

SEC Charges Maxim with Failing to File Suspicious Activity Reports and Violations of Regulation SHO

According to the SEC’s order, from at least January 2018 through January 2019, Maxim facilitated order flow from other broker-dealers engaged in the sale of large volumes of shares of low-priced over-the-counter microcap securities but did not adequately design or implement its anti-money laundering policies and procedures so as to reasonably address the risks associated with this business. The order further finds that due to these deficiencies, and Maxim’s failure to sufficiently investigate red flags, Maxim failed to file SARs for numerous suspicious transactions. 

Also, according to the order, Maxim routinely facilitated “not held” long sale orders in low-priced securities from its broker-dealer customers by executing a series of principal short sales throughout the day and covering its short positions by purchasing the stock from the broker-dealer customer at a lower price. The order finds that Maxim did not, however, “locate” shares of the stock to borrow prior to effecting its short sales as required by the short-selling provisions of Regulation SHO.

I wonder if Maxim works with hedge funds like conspiracy of hedge funds or simply turns a blind eye?

I do recall someone mentioning money laundering in connections with these hedge funds.

https://www.sec.gov/enforcement-litigation/administrative-proceedings/34-98605-s