In the Matter of Alexander Capital, L.P.

Admin. Proc. File No. 3-18561

Admin. Proc. File No. 3-18562

Admin. Proc. File No. 3-18563

On June 29, 2018, the Commission instituted and simultaneously settled administrative proceeding (the “Order”) against Alexander Capital, L.P. (the “Respondent”). In the Order, the Commission found that from 2012 through 2014, the Respondent failed to reasonably implement policies and procedures and permitted a lax compliance environment in which its registered representatives (“RRs”) were not monitored or disciplined, procedures were not followed, and indications of potential misconduct were not acted upon by two supervisors of three RRs. As a result, three RRs violated the antifraud provisions of the federal securities laws in their handling of customer accounts without anyone at Alexander Capital preventing or detecting their violations. The Commission ordered, and the Respondent has paid $193,774.86 in disgorgement, $23,436.78 in prejudgment interest, and $193,774.86 in civil penalties. In the Order, the Commission also created a Fair Fund (the “Alexander Capital Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty, along with the disgorgement and prejudgment interest, can be distributed to those investors harmed by the Respondent’s conduct described in the Order. See the Commission’s Order: Release No. 34-83562 .

On July 15, 2019, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator of the Alexander Capital Fair Fund. See the Commission’s Order: Release No. 34-86382 .

The Commission also instituted and settled two separate, but related administrative proceedings against the supervisors of the three RRs, Phillip A. Noto, III (“Noto”) and Barry T. Eisenberg (“Eisenburg”), for their respective roles in the Respondent’s misconduct. In their respective orders, Noto and Eisenberg were ordered to pay civil money penalties of $20,000.00 and $15,000.00. In each of their orders, the Commission also created Fair Funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid can be distributed to harmed investors. See the Commission’s Orders: 34-83563 (Noto) and 34-83564 (Eisenberg).

In a related district court action, William C. Gennity and Rocco Roveccio (collectively, the “Defendants”) were ordered to pay $302,483.47 and $324,613.98 in disgorgement, prejudgment interest, and civil penalties, respectively, and the Court further ordered all monies paid to be combined with the Alexander Capital Fair Fund.

On April 6, 2023, the Commission issued an order consolidating the funds collected, including any future collections, from Nolo and Einsenberg into a single Fair Fund, the Alexander Capital Fair Fund, for the purpose of distribution to harmed investors. See the Commission’s Order: Release No. 34-97258.

On September 17, 2024, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”).  The notice provides the public with 30 days to submit their comments on the Proposed Plan.  See the Commission’s Notice: Release No. 34-101031 and the Proposed Plan. 

The Proposed Plan provides that the distribution of the Fair Fund shall be made to those injured investors based on fees paid during the relevant period as calculated by the methodology used in the plan of allocation in the Plan.

The Alexander Capital Fair Fund (the “Fair Fund”) is comprised of the funds received from the Alexander Capital, Noto, Eisenberg, Gennity, and Roveccio; and has been deposited in a Commission-designated account at the U.S. Department of the Treasury. Any additional collections received, and any accrued interest will be added to the Fair Fund.

On November 13, 2024, the Commission issued an order approving the plan of distribution and published the approved plan of distribution (“Plan”). See the Commission’s Order: Release No. 34-101596 and the Plan.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov