Less than 20 days after they were sued by the Securities and Exchange Commission for similar violations in a US federal court in New York City, Lek Securities Corporation (LEK), a US-registered broker-dealer, and Samuel Lek, its principal owner and chief executive officer, were named in a disciplinary proceeding by the Financial Industry Regulatory Authority and 10 exchanges (collectively, the “SROs”) with aiding and abetting the manipulative trading of a customer, Avalon FA Ltd, a non-US entity, as well as other violations. In addition to charging LEK and Mr. Lek with aiding and abetting Avalon’s manipulation thorough layering, spoofing and cross-market manipulation, the SROs also charged LEK with aiding and abetting Avalon in operating an unregistered broker-dealer; failing to retain required electronic communications; improperly paying transaction-based compensation to an unregistered person; and failing to comply “fully and timely” with information requests. In addition, LEK and Mr. Lek were charged jointly with supervisory violations and for violating the SEC’s market access rule. (Click here to access SEC Regulation MAR, Rule 15c3-5. Adopted in November 2010 and effective July 14, 2011, this rule requires broker-dealers providing market access to document and maintain a system of risk management controls “reasonably designed to manage the financial, regulatory or other risks” of its business.) The SROs seek findings, disgorgement, the costs of any proceeding and fines against the respondents. The SROs, besides FINRA, are the New York Stock Exchange, NYSE MKT, NYSE Arca, Nasdaq, NASDAQ BX, the four Bats exchanges, and the International Securities Exchange. On March 10, the SEC filed an enforcement action again against LEK and Mr. Lek for facilitating manipulative trading by Avalon. (Click here for details, in the article “US Broker-Dealer, Its CEO and a Non-US Client Sued by SEC for Layering and Other Manipulative Schemes” in the March 12, 2017 edition of Bridging the Week.)