US Securities and Exchange Commission sanctions Leroy King and bars him from certain financial activities
Leroy King, the former administrator and chief executive officer of
the Financial Services Regulatory Commission (FSRC), has been
barred from any further association with the investment and
financial services sector by the United States Government.
According to a recent document, King – who is serving a 10-year
sentence in a US prison for financial crimes – submitted an offer of
settlement to the US Securities and Exchange Commission (SEC).
The Commission has “determined to accept” his offer, while King – a
dual citizen of the United States and Antigua and Barbuda – has
subjected himself to the Commission’s jurisdiction over him and the
remedial sanctions it has imposed.
Accordingly, the SEC has ordered that King should be, and is hereby,
barred from association with any broker, dealer, or investment
adviser.
Additionally, he is barred from participating in any offering of a
penny stock, including: acting as a promoter, finder, consultant,
agent or other person who engages in activities with a broker,
dealer or issuer.
The Commission says that any reapplication for association by King
will be subject to the applicable laws and regulations governing the
re-entry process, and re-entry may be conditioned upon a number of
factors.
King headed the FSRC from approximately 2002 to 2009. He was
therefore responsible for regulatory oversight of the investment
portfolio of Stanford International Bank, Ltd.
The SEC had alleged that King, who fought his extradition to the USA
to face charges for over a decade, accepted approximately
US$520,963.87 in cash payments, Super Bowl tickets, and “repeated
flights on private jets owned or controlled by Stanford or SFG
entities.”
These were in exchange for causing the FSRC not to exercise its
functions by independently verifying the existence and value of the
Bank’s investments.
On January 30, 2020, King pleaded guilty to obstructing a
proceeding before the Commission and to conspiracy to obstruct a
Commission proceeding.
