SEC Charges Paul McCabe and PMAC Consulting with Acting as Unregistered Brokers for Pre-IPO Stocks

The Securities and Exchange Commission today announced that Paul John McCabe Jr. and his unregistered firm PMAC Consulting LLC have agreed to pay $3 million to resolve SEC charges for illegally brokering transactions involving the stock of private companies that were expected to undertake an initial public offering (IPO). According to the SEC’s order, McCabe consented to a permanent bar from broker activity by the Financial Industry Regulatory Authority (FINRA) in late 2016 after he refused to provide documents and information while affiliated with a registered broker-dealer being examined by FINRA. The SEC’s order finds that McCabe concurrently established PMAC Consulting and continued engaging in broker activity without registering as a broker-dealer or associating with a registered broker-dealer.