{"id":4633,"date":"2008-07-16T17:26:00","date_gmt":"2008-07-16T17:26:00","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2008\/07\/scottrade_agrees_to_950000_civ"},"modified":"2021-09-20T15:44:08","modified_gmt":"2021-09-20T20:44:08","slug":"scottrade-agrees-to-950000-civ","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/scottrade-agrees-to-950000-civ\/","title":{"rendered":"Scottrade Agrees to $950,000 Civil Penalty To Resolve SEC Charges of Fraudulent Misrepresentation Regarding Nasdaq Pre-Open Order Executions"},"content":{"rendered":"

\t\t\t\tScottrade Inc. agreed to pay a $950,000 civil penalty to settle Securities and Exchange Commission charges that it made fraudulent misrepresentations<\/a> to clients related to the execution of Nasdaq pre-open orders. The brokerage firm is not admitting to or denying wrongdoing by settling the charges. Scottrade is, however, agreeing to cease and desist from committing future violations.<\/p>\n

Pre-open orders are normally placed after the market closes for execution when the market opens next. The SEC alleges that Scottrade made fraudulent misrepresentations when Scottrade told customers it would direct their orders based on a number of factors, including liquidity at market opening.<\/p>\n

The SEC says that when a broker-dealer accepts customer orders, the firm is impliedly representing that it will make sure to review the quality of execution on orders. SEC Enforcement Director Linda Thomsen says that Scottrade not only failed to regularly and properly review the execution process but it neglected to consider the way technological advances were impacting the orders.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Scottrade Inc. agreed to pay a $950,000 civil penalty to settle Securities and Exchange Commission charges that it made fraudulent misrepresentations to clients related to the execution of Nasdaq pre-open orders. The brokerage firm is not admitting to or denying wrongdoing by settling the charges. Scottrade is, however, agreeing to cease and desist from committing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3801,3741],"tags":[],"class_list":["post-4633","post","type-post","status-publish","format-standard","hentry","category-sec","category-securities-fraud"],"yoast_head":"\nScottrade Agrees to $950,000 Civil Penalty To Resolve SEC Charges of Fraudulent Misrepresentation Regarding Nasdaq Pre-Open Order Executions — Investor Lawyers Blog — July 16, 2008<\/title>\n<meta name=\"description\" content=\"Scottrade Inc. agreed to pay a $950,000 civil penalty to settle Securities and Exchange Commission charges that it made fraudulent misrepresentations to — July 16, 2008\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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