(ConservativeHub.com) – Average working-class Americans have suffered tremendous financial setbacks in 2020 due to the COVID-19 pandemic. Numerous companies benefited during the pandemic, at times assisted by accompanying market shifts — and at others by somewhat dubious business practices.
Take, for example, recent revelations about financial services company Robinhood Markets. On Thursday, December 17, the Securities and Exchange Commission (SEC) filed charges against the California-based investment company for allegedly failing to disclose to its customers deals that it made with trading firms.
SEC Charges Robinhood Financial With Misleading Customers About Revenue Sources and Failing to Satisfy Duty of Best Execution: https://t.co/rfj7YOmQdJ
— SEC Enforcement (@SEC_Enforcement) December 17, 2020
Additionally, the SEC accused Robinhood of posting misleading statements on the “Frequently Asked Questions” pages on its website. As a result, its customers reportedly lost tens of millions of dollars using the company’s financial services.
The company also faces civil action from Massachusetts regulators who recently filed a complaint against them for taking advantage of “inexperienced investors.”
Robinhood agreed to pay a civil penalty of $65 million without having to acknowledge or deny the SEC’s claims. No deadline has been set in Massachusetts regarding its complaint.
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