In the Matter of VectorGlobal WMG, Inc.

VectorGlobal WMG, Inc. allegedly failed to establish, maintain, or enforce a supervisory system reasonably designed to achieve compliance with Section 5 of the Securities Act of 1933. The firm had no specific WSPs or procedures addressing Regulation S, and no surveillance or other supervisory tools to review transactions with respect to Regulation S and no supervisory practices for doing so. The firm offered and sold more than $5.8 million of debt securities distributed in reliance on Regulation S to customers notwithstanding red flags indicating that those transactions, which occurred during the 40-day distribution compliance periods, may not have qualified for a safe harbor.

Summary generated from official Financial Industry Regulatory Authority press release