United States SEC Fines PMAC Consulting & Paul John McCabe Jr $3 Million for Illegally Brokering Pre-IPO Shares & Received $16 Million in Compensation from a Few Funds & Close to 100 Sellers, Paul John McCabe Jr Had Previously Consented to a Permanent Ban from Broker Activity in 2016 But Setup PMAC Consulting & Continued to Engage in Broker Activity
19th January 2025 | Hong Kong
The United States Securities and Exchange Commission (SEC) has fined PMAC Consulting & Paul John McCabe Jr $3 million for illegally brokering pre-IPO shares & received more than $16 million in compensation from a few funds & close to 100 sellers. Paul John McCabe Jr had previously consented to a permanent ban from broker activity in 2016 (Financial Industry Regulatory Authority, FINRA), but setup PMAC Consulting & continued to engage in broker activity. United States SEC (17/1/25): “The Securities and Exchange Commission today announced that Paul John McCabe Jr. and his unregistered firm PMAC Consulting LLC have agreed to pay $3 million to resolve SEC charges for illegally brokering transactions involving the stock of private companies that were expected to undertake an initial public offering (IPO). According to the SEC’s order, McCabe consented to a permanent bar from broker activity by the Financial Industry Regulatory Authority (FINRA) in late 2016 after he refused to provide documents and information while affiliated with a registered broker-dealer being examined by FINRA. The SEC’s order finds that McCabe concurrently established PMAC Consulting and continued engaging in broker activity without registering as a broker-dealer or associating with a registered broker-dealer. The order finds that McCabe negotiated the terms of transactions for the purchase and sale of pre-IPO shares, worked directly with issuers, provided advice or valuations to purchasers, and acted as the primary intermediary between buyers, sellers, and their agents or representatives. According to the order, McCabe received more than $16 million in transaction-based compensation through PMAC on behalf of several fund clients and nearly 100 sellers. The SEC’s order finds that McCabe, who is based in Bethesda, Maryland, and PMAC violated the broker-dealer registration provision of the federal securities laws. Without admitting or denying the findings, McCabe and PMAC agreed to industry and penny stock bars as well as joint and several civil penalties of $3 million. They also agreed to cease and desist from future violations.”
“ United States SEC Fines PMAC Consulting & Paul John McCabe Jr $3 Million for Illegally Brokering Pre-IPO Shares & Received $16 Million in Compensation from a Few Funds & Close to 100 Sellers, Paul John McCabe Jr Had Previously Consented to a Permanent Ban from Broker Activity in 2016 But Setup PMAC Consulting & Continued to Engage in Broker Activity “
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United States SEC Fines PMAC Consulting & Paul John McCabe Jr $3 Million for Illegally Brokering Pre-IPO Shares & Received $16 Million in Compensation from a Few Funds & Close to 100 Sellers, Paul John McCabe Jr Had Previously Consented to a Permanent Ban from Broker Activity in 2016 But Setup PMAC Consulting & Continued to Engage in Broker Activity
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