Investment Management
Capital Markets Advisors LLCHeadquarters
Find BBB Accredited Businesses in Investment Management.
Information and Alerts
Alert Details
This business has 1 alert.
Government Actions
SEC Resolves Litigation Against Municipal Advisor, Capital Markets Advisors LLC
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On December 20, 2024, the Securities and Exchange Commission (SEC) announced that it has resolved all pending litigation in the action it filed in the U.S. District Court for the Western District of New York on June 14, 2022 against the City of Rochester, NY and its former finance director Rosiland Brooks-Harris, and against a New York-based municipal advisor, Capital Markets Advisors, LLC (CMA), and two of its principals, Richard Tortora and Richard Ganci (CMA Defendants).
In its Complaint, the SEC alleged that, in 2019, the City, Brooks-Harris, CMA and Ganci misled investors with bond offering documents that included outdated financial statements for the Rochester City School District (District) and did not indicate that the District was experiencing financial distress due to overspending on teacher salaries. The SEC alleged that, in connection with the alleged bond offering conduct, the City and Brooks-Harris violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC alleged that, in connection with the alleged bond offering conduct, Ganci and CMA violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 15B(c)(1) of the Exchange Act, and MSRB Rules G-17 and G-42.
The SEC’s Complaint separately alleged that the CMA Defendants failed to disclose to nearly 200 municipal clients that CMA had material conflicts of interest arising from its compensation arrangements. The SEC alleged that, by this conduct, the CMA Defendants violated Section 15B(c)(1) of the Exchange Act, MSRB Rules G-17, G-42 and G-44. As previously announced, on April 15, 2024, the Court found that the CMA Defendants violated those provisions in connection with their failure to disclose material conflicts.
On December 26, 2024, the court entered a final judgment by consent against the CMA Defendants. The CMA Defendants, without admitting or denying the allegations in the Complaint, consented to the entry of the final judgment which: (a) enjoined them from future violations of Section 15B(c)(1) of the Exchange Act and MSRB Rules G-17, G-42, and G-44, and (b) ordered civil penalties of $175,000 as to CMA, $30,000 as to Ganci, and $30,000 as to Tortora. As part of the settlement, the SEC dismissed its claims against CMA and Ganci for violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
BBB Business Profiles may not be reproduced for sales or promotional purposes.
BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.
As a matter of policy, BBB does not endorse any product, service or business. Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation. BBB charges a fee for BBB Accreditation. This fee supports BBB's efforts to fulfill its mission of advancing marketplace trust.