SEC Charges Robinhood Over 10 Violations, Including Identity Theft And Trading Data Failures

Benzinga

Robinhood Securities LLC and Robinhood Financial LLC agreed to pay $45 million in penalties to settle SEC charges of violating over ten securities law provisions. The SEC detailed failures in reporting suspicious trading, implementing identity theft protections, addressing unauthorized system access, and maintaining required records from 2020 to 2021. Robinhood Securities also failed to provide accurate trading information, misreporting data on over 390 million transactions over five years. The SEC found violations of Regulation SHO in the company’s stock lending and fractional share programs. Robinhood's General Counsel Lucas Moskowitz stated the issues were historical and resolved, emphasizing the firm's commitment to innovation.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Robinhood Securities and Robinhood Financial agreed to pay 45 million dollars in penalties

00:06to settle SEC charges of violating over 10 securities law provisions.

00:11The SEC detailed failures in reporting suspicious trading, implementing identity theft protections,

00:16addressing unauthorized system access, and maintaining required records from 2020 to 2021.

00:23Robinhood Securities also failed to provide accurate trading information, misreporting data

00:28on over 390 million transactions over five years.

00:31The SEC found violations of Regulation SHO in the company's stock lending and fractional

00:37share programs.

00:38Robinhood's General Counsel Lucas Moskowitz stated the issues were historical and resolved,

00:43emphasizing the firm's commitment to innovation.

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