Cantor Fitzgerald, run by President-elect Donald Trump's nominee to helm the Commerce Department, was charged by the Securities and Exchange Commission for misleading investors.
The Wall Street financial services firm, whose CEO is Howard Lutnick, agreed to pay $6.75 million to settle the charges, the SEC said.
The federal agency said a team of Cantor Fitzgerald executives that managed and controlled two special acquisition companies in 2020 and 2021 raised $750 million from investors ahead of the SPACs' eventual mergers with View and Satellogic.
SPACs, also known as blank-check firms, are shell companies formed to raise money through an initial public offering so they can merge or acquire another business.
The SPACs, in their SEC filings, denied having any contact or holding substantive talks with potential targets before the IPOs.
But Cantor Fitzgerald executives, acting on behalf of the SPACs, had already begun discussions with 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.
"This enforcement action reflects the straightforward proposition that any disclosures about substantive discussions with potential targets must be materially accurate," Wadhwa said.
