SEC charges Robinhood with securities violations; brokerage to pay $45 million penalty
Source: NBC News/CNBC
Jan. 13, 2025, 5:31 PM EST / Source: CNBC
The Securities and Exchange Commission on Monday said two related Robinhood broker-dealers agreed to pay $45 million in combined penalties to settle administrative charges that they violated more than 10 separate securities law provisions related to their brokerage operations.
The violations by Robinhood Securities LLC and Robinhood Financial LLC are related to failures to report suspicious trading in a timely manner, failing to implement adequate identity theft protections and failing to adequately address unauthorized access to Robinhood computer systems, the SEC said.
The two Robinhood entities also had longstanding failures to maintain and preserve electronic communications, failed to retain copies of operational databases, and failed to maintain some customer communications as legally required between 2020 and 2021, according to the agency.
The SEC said that Robinhood Securities alone failed for more than five years “to provide complete and accurate securities trading information, known as blue sheet data” to the agency.
Read more: https://www.nbcnews.com/business/business-news/sec-charges-robinhood-securities-violations-brokerage-pay-45-million-p-rcna187525
Link to SEC PRESS RELEASE - Two Robinhood Broker-Dealers to Pay $45 Million in Combined Penalties for Violating More Than 10 Separate Securities Law Provisions
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their customers tend to be lower income, younger, inexperienced, etc. who don't ask why something is free. 
Their name evokes images of stealing from the rich and giving to the poor. 
