Fri, 21 Feb 2020 21:51:51 +0000
SEC: DPP says First Citizens IPO case lacks evidence
THE TT SECURITIES and Exchange Commission (SEC) is defending its processes and decisions following what it called public "commentary (that) indicates a degree of public misinformation and uncertainty regarding the commission."
In a supplemental statement published Friday as a follow-up to its notice of settlement on February 3, the commission outlined its process for handling the First Citizens initial public offering (IPO) scandal, where former chief risk officer Hassan Phillip Rahaman bought 659,588 shares and four months later, sold 634,588 to his cousin, Imtiaz Rahaman, his aunt Alia, and five Rahaman-family controlled businesses.
In early 2014, the media first reported the transaction, prompting the SEC investigation. On February 3, in a notice of settlement, the SEC announced Phillip and Imtiaz Rahaman would be fined $750,000 each, while the broker, Bourse Securities, would be fined $1.3 million.
In June 2015, after the investigation was completed, the SEC referred its findings to the Director of Public Prosecutions. A year and a half later, in Janaury 2017, the DPP responded, advising there was "insufficient evidence to support a conviction with a realistic prospect of success" under the Securities Act or for fraud.
Following that advice, and after