Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OPINION AND ORDER Plaintiff Securities and Exchange Commission (the “SEC”) brought this civil enforcement action against Defendants Adam Mattessich and Joseph Ludovico, two securities brokers formerly employed by Cantor Fitzgerald & Co. (“Cantor”).1 Plaintiff alleges that Mattessich and Ludovico schemed to circumvent Cantor’s established procedures for paying and recording commission payments to its brokers for the time period between January and December 2013 (the “Relevant Period”). Plaintiff contends that, in so doing, Defendants aided and abetted Cantor’s violations of Rule 17a-3(a)(19), 17 C.F.R. §240.17a-3(a)(19), which was promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), Pub. L. 73-291, 48 Stat. 881, and which requires registered broker-dealers to make and keep accurate records of each securities transaction attributable, for compensation purposes, to each broker. By Order dated September 9, 2019 (Dkt. #41), the Court denied Defendants’ motion to dismiss, and on December 18, 2019, the Court entered a final judgment as to Defendant Ludovico on consent (Dkt. #58). Plaintiff now moves for summary judgment as to liability against Defendant Mattessich, the only remaining Defendant in this case. Plaintiff also moves to strike portions of an affidavit Defendant submitted in opposition to the instant motion for summary judgment. For the reasons set forth in the remainder of this Opinion, the Court denies Plaintiff’s motion to strike, and grants in part and denies in part Plaintiff’s motion for summary judgment. BACKGROUND2 A. Factual Background The Court has previously expounded on the history of this case in the course of resolving Defendants’ motion to dismiss. Sec. & Exch. Comm’n v. Mattessich, 407 F. Supp. 3d 264, 266-68 (S.D.N.Y. 2019) (“Mattessich I”). It therefore mentions here only what is relevant to the instant motion. 1. Cantor’s Policies and Procedures Concerning the Payment and Recording of Commission Compensation Cantor has been a registered broker-dealer with the SEC since December 1947. (Pl. 56.1 2). From at least 2001 to the present, Cantor has used a system of account executive (or “AE”) codes linked to customer accounts to apportion and track commission compensation for its brokers for securities transactions related to those accounts. (Id. at

13, 15). Cantor assigns an individual AE code to each employee with responsibility for sales and trading, and each brokerage transaction is associated with an AE code that dictates which Cantor employee or employees will receive the commission generated by the associated transaction. (Id. at

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

New York Legal Awards 2021

October 13, 2021
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


BenefitsPRO Broker Expo 2021

May 18, 2021 - August 18, 2021
Virtual / San Diego, CA

The premier educational and networking event for employee benefits brokers and agents.


African Legal Awards 2021

September 03, 2021

The African Legal Awards are set out to recognise exceptional achievement from Africa s legal elite.


Divisional Office Coordinator

San Francisco, California, United States

The United States Bankruptcy Court for the Northern District of California: Seven Bankruptcy Judges. Clerk’s Office staff of 50. ...

Apply Now ›

Plaintiff Mass Tort and Medical Malpractice Attorney

Voorhees, New Jersey, United States

Javerbaum Wurgaft, a large statewide civil litigation firm with nine (9) offices, seeks: associate attorney experienced in litigating m...

Apply Now ›

Litigation Associate

WHITE PLAINS, New York, United States

 About the firm: Defense firm has extensive experience for over 30 years in the defense of Labor Law and construction accident litigat...

Apply Now ›


Connecticut Law Tribune

View Announcement ›



VAN DER VEEN, O NEILL, HARTSHORN, AND LEVIN is pleased to welcome Frank Breitman, Esq. a talented and respected litigator to our ranks of trial lawyers.

View Announcement ›



HARWOOD LLOYD, LLC Welcomes Beth L. Barnhard, Esq. Beth has joined the firm as Counsel in the Wills, Trusts and Estates Department. She is Certified to be an Elder Law Attorney (CELA) by the ABAaccredited National Elder Law Foundation.

View Announcement ›