Trump Commerce Nominee Lutnick’s Firm Faces SEC Penalty

Cantor Fitzgerald has agreed to pay a civil penalty of over $6 million to settle charges from the SEC alleging regulatory disclosure violations involving two SPACs. The SEC accused Cantor of misleading investors by falsely claiming in public filings that it had not engaged in substantive discussions with potential merger targets before the SPACs' IPOs. Cantor neither admitted nor denied the allegations. Cantor’s chairman and CEO, Howard Lutnick, has been nominated by President-elect Donald Trump to lead the Commerce Department and serves as co-chair of Trump’s transition team.