Caledonian Bank officers ‘complicit’ in $38 m securities fraud, says SEC

Records provided to the U. S. SEC by the liquidators of Cayman Islands-domiciled Caledonian Bank show that “high-level employees” of the bank were “complicit” in a pump-and-dump securities fraud by clients that netted a $38 million profit, says the regulator. Caledonian has agreed to pay $25 m in “disgorgement” but the SEC has agreed to “forgo payment” due to the bank’s insolvency.