Donald Trump commerce pick’s firm charged by SEC

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A firm run by Donald Trump’s pick for secretary of commerce has been sued by the Securities and Exchange Commission (SEC) over allegations that it misled investors.

On November 19, Trump announced via Truth Social that he had nominated Howard Lutnick to lead the Department of Commerce, tasking the businessman with heading up his administration’s “tariff and trade agenda.” Lutnick, who played a key role in Trump’s 2024 campaign, is the current CEO and chair of Cantor Fitzgerald, a global financial services firm headquartered in New York City.

Prior to his nomination, Lutnick served as co-chair of the Trump transition team alongside WWE co-founder Linda McMahon, who has been nominated for secretary of education.

What Has Howard Lutnick’s Company Been Charged With?

On Thursday, the SEC said it had charged Cantor Fitzgerald with “causing two special purpose acquisition companies that it controlled to make misleading statements to investors ahead of their initial public offerings.”

The two firms—CF Finance Acquisition Corp. II and CF Acquisition Corp. V—together raised $750 million in their IPOs. The SPACs were subsequently merged with two companies—the former with smart glass manufacturer View, Inc., and the latter with satellite imaging and geospatial data company Satellogic Inc.

Cantor Fitzgerald Chairman and CEO Howard Lutnick (R), U.S. President-elect Donald Trump’s choice for secretary of commerce, moves between meetings with senators on Capitol Hill on December 11, 2024 in Washington, DC. On Thursday, the…


Chip Somodevilla/Getty Images

However, contrary to what was stated in the SEC filings, the watchdog said that Cantor Fitzgerald personnel, acting on behalf of the two firms, had “already commenced negotiations” with “a small group of potential target companies,” which included View and Satellogic.

“Cantor Fitzgerald misled investors about a critical investment consideration by repeatedly stating in public filings that it had not identified or approached any potential merger targets, despite having had substantive discussions with several private companies regarding a potential merger, including with the companies with which its SPACs eventually merged,” Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, said on Thursday. “This enforcement action reflects the straightforward proposition that any disclosures about substantive discussions with potential targets must be materially accurate.”

What Will Happen as a Result of the Charge?

“No investor was ever harmed by the alleged issues described in the order,” Cantor Fitzgerald said in a statement, as quoted in Bloomberg. “We are pleased to have concluded this matter by mutual agreement with the SEC.”

Cantor Fitzgerald has agreed to pay a civil penalty of $6.75 million within 14 days of the order to settle the SEC’s charges “without admitting or denying the order’s findings,” the Commission said.

Newsweek has reached out to Cantor Fitzgerald via email outside of working hours for further comment on the SEC’s charges.

The SEC itself will fall under new leadership next year, with incumbent Chair Gary Gensler set to step down from the post on the day of Trump’s inauguration. Last Wednesday, the president-elect said he would nominate former Chair Paul Atkins as Gensler’s successor, describing the businessman and lobbyist as “a proven leader for common sense regulations.”

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