Today, after a 5-day trial, a jury in the Southern District of New York ruled in favor of the SEC against a former senior trader at Cantor Fitzgerald for a commission-splitting scheme. This verdict completes a multi-year case.

Statement of SEC Division of Enforcement Director Gurbir S. Grewal:

“We are pleased with the verdict holding former Cantor Fitzgerald & Co. global co-head of equities, Adam Mattessich, liable for aiding and abetting a books-and-records violation by Cantor Fitzgerald. Mattessich improperly received off-book commission payments from a trader that he managed, which violated the firm’s policies and procedures. This verdict underscores the importance of the books-and-records requirements of the federal securities laws and that the Commission will continue to hold responsible those who violate or aid and abet violations of those provisions.”

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More information:

June 29, 2018

The SEC announced that Cantor Fitzgerald, without admitting or denying the SEC’s findings, agreed to settle charges stemming from the off-book commission-splitting scheme on June 29, 2018 and pay a $1.25 million penalty. The SEC also filed its civil complaint against Adam Mattessich and a former senior trader at Cantor Fitzgerald, Joseph (a/k/a Jay) Ludovico, for their roles in the scheme: https://www.sec.gov/litigation/litreleases/2018/lr24179.htm

September 13, 2019

The Court denied the motion filed by Adam Mattessich and Joseph (a/k/w Jay) Ludovico to dismiss the SEC’s civil complaint on September 13, 2019: https://www.sec.gov.litigation/litreleases/2019/lr24591.htm

December 19, 2019

The SEC settled with Joseph (a/k/a Jay) Ludovico on December 18, 2019, and barred him on December 19, 2019: https://www.sec.gov/litigation/admin/2019/34-87805.pdf