The Securities and Exchange Commission (SEC) today announced settled charges against Wedbush Securities Inc., a registered broker dealer, for failing to provide complete and accurate securities trading information, known as blue sheet data, to the Commission.

Wedbush agreed to pay a $1,900,000 civil penalty to resolve the SEC’s charges.

According to the SEC’s order, from at least March 2018 through December 2023, in response to requests from the Commission staff, Wedbush made at least 19,571 blue sheet submissions to the SEC that contained inaccurate or missing information, resulting in the misreporting of data for at least 51.8 million securities transactions.

The SEC’s order finds that these deficiencies were caused by seven types of errors, three of which were self-reported by Wedbush. The SEC’s order further finds that Wedbush engaged in remedial efforts concerning its blue sheet reporting system and control environment, including by developing an in-house blue sheet reporting validation system, and creating dedicated teams to oversee its regulatory submissions, including blue sheet submissions.

The SEC order finds that Wedbush willfully violated the broker-dealer recordkeeping and reporting provisions of Section 17(a)(1) of the Securities Exchange Act of 1934 and Rules 17a-4(j) and 17a-25 thereunder. Wedbush admitted the findings in the order and agreed to a cease-and-desist order, a censure, and to pay a $1,900,000 penalty.