He's wrong and that's simply proven by the fact the SEC has never gone there. Greek is smart but he's way off base on this one. The SEC has absolutely no reason to go after a custodial. It defeats their own rule on custodianships.
What can happen is it can get slapped with the CE like SNV# yesterday for self promo on Twitter, which Lazar doesn't do. If SNV# wasn't a custo it most definitely would have been suspended.