November 24, 2015

Political intelligence firm, Marwood Group Research LLC, will pay a $375,000 penalty for failing to properly inform compliance officers about instances in which analysts obtained potential material nonpublic information from government employees.  According to the SEC’s order, in 2010, Marwood analysts sought and received information about policy issues or pending regulatory approvals before the Centers for Medicare and Medicaid Services (CMS) and the Food and Drug Administration (FDA).  Without bringing this information to the compliance department to be vetted for any material nonpublic information, Marwood drafted research notes based in part on this information and distributed them directly to clients who could have used any material nonpublic information contained therein to inform securities trading decisions.  SEC

Tagged in: Regulatory Violations, Securities Fraud,