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Matthias Knab, Opalesque: The U.S. Securities and Exchange Commission on May 12, 2026 approved a plan of distribution that will return $347,989.04 to retail customers of PHX Financial, Inc. who were harmed by a registered representative's short-term, high-volume trading strategy carried out between January 2019 and October 2021.
According to the underlying Commission order (Exchange Act Rel. No. 101361, October 16, 2024), the representative recommended a strategy to at least eight retail customers that generated such high commissions and fees that it would have been, in the Commission's words, "virtually impossible" for these customers to achieve positive returns. All eight customers lost money. PHX and the representative together collected more than $400,000 in commissions and fees from the affected accounts.
The Fair Fund, established under Section 308(a) of the Sarbanes-Oxley Act of 2002, consists of $142,995.19 in disgorgement, $24,993.85 in prejudgment interest, and a $180,000 civil money penalty. The Division of Enforcement received no comments during the 30-day notice period that followed publication of the proposed plan on March 19, 2026.
What PHX did wrong - and why it matters
The Commission found PHX in violation of Section 15(b)(4)(E) of the Exchange Act and Exchange Act Rules 15l-1(a)(1) and 15l-1(a)(2)(ii) and (iv) - the General Obligation and Care Obligation components of Regulation Best Interest ("Reg BI"), which bec...................... To view our full article Click here
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