SEC v. E*Trade Securities, LLC and and G1 Execution Services, LLC (unregistered distributions, 2014)

Settled

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In 2014 the SEC settled an administrative order against E*Trade Securities, LLC and G1 Execution Services, LLC for facilitating unregistered penny stock sales, with $1,402,850 disgorgement, $182,166 interest and a $1,000,000 penalty.

The record

What was ordered

Civil penalty

$1m

Disgorgement

$1.4m

Prejudgment interest

$182k

Total relief

$2.6m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

On October 9, 2014 the SEC accepted settlements with E*Trade Securities, LLC and G1 Execution Services, LLC. The order finds they facilitated thousands of unregistered penny stock resales by three institutional customers between March 2007 and April 2011 despite red flags, in violation of Securities Act Section 5. They must pay $1,402,850 in disgorgement and $182,166 in interest jointly and a $1,000,000 penalty. The record previously split the second name from 'and'.

This library tags the matter as unregistered distributions, based on the conduct the document describes. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Unregistered distributions — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2014-10-09 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.