SEC Bans Individual from Securities Industry Following Fraud Allegations

The U.S. Securities and Exchange Commission endorsed a decision to ban Laurence G. Allen from the securities industry. The opinion, issued by three commissioners on September 21, found that Allen’s conduct while controlling NYPPEX Holdings was "egregious and recurrent." The opinion cites a ruling where a judge found Allen engaged in "a shocking level of self-dealing, breaches of fiduciary duty, misappropriation of enormous sums of capital, and outright fraud." The conflict dates back to 2019 when investor fraud was alleged involving more than $13 million.

The ban follows an administrative proceeding initiated by the SEC in 2022. The findings detail how Allen allegedly used a partnership as a "private piggy bank" to fund NYPPEX, which was described as a "failing broker-dealer." The action bars Allen from associating with anyone in the securities industry.