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Replies to post #115300 on DD Support Board and Research Team
Washington D.C., March 26, 2015 —
The Securities and Exchange Commission today charged nearly two dozen companies and individuals who regularly bought and sold securities on behalf of a suburban Chicago-based trading firm without registering with the SEC as a broker-dealer as required under the federal securities laws.
The broker-dealer registration provisions of the securities laws ensure the protection of customers by requiring firms to undergo periodic inspections by the SEC and maintain books and records for their securities transactions. An SEC investigation found that Global Fixed Income LLC, which was primarily in the business of purchasing investment grade corporate bonds, entered into agreements with third parties that acted as unregistered broker-dealers on its behalf and bought billions of dollars’ worth of newly issued bonds causing Global Fixed Income’s allocation in the bond offerings to increase. Because the offerings were often oversubscribed, Global Fixed Income was generally able to sell or “flip” the bonds within a few days for a small profit compared to the dollar value of the trade, and it split profits with the third-party participants.
Global Fixed Income and its owner Charles Perlitz Kempf, who arranged the deals, agreed to settle the SEC’s charges along with 21 third-party participants. They must collectively pay nearly $5 million in disgorgement of profits plus approximately $1 million in penalties.
AGS Capital Group, which is based in Florida, and its owner Allen Gabriel Silberstein of Miami.
This company was originally registered in New York, then registered in Nevada and filed to do business in Florida. Mr. Silberstein was born and raised in New York and now lives in Miami. Mr. Silberstein went to Shenendehowa High School, Binghamton University, Boston University Law School, Hofstra Law School and New York University for Structured Finance. He started his career as a Structured Finance Associate at Cadwalader, Wickersham & Taft and then continued to work at Deutsche Bank and Visium Asset Management before founding AGS Capital Group, LLC.
