Reported by Erica Kollmann
SEC Charges Cantor Fitzgerald With Causing 2 SPACs To Make Misleading Statements
The Securities and Exchange Commission on Thursday charged financial services firm Cantor Fitzgerald, L.P. with causing two special purpose acquisition companies that it controlled to make misleading statements to investors ahead of their initial public offerings.
The SEC’s Order states that a team of Cantor Fitzgerald executives controlled two SPACs in 2020 and 2021 which raised $750 million from investors through IPOs. The SEC’s order finds that Cantor Fitzgerald caused the SPACs in their SEC filings to deny having had contact or substantive discussions with potential business combination targets prior to their IPOs.
However, the Order finds that at the time of each SPAC’s IPO, Cantor Fitzgerald personnel had already begun negotiations with a group of potential target companies for the SPACs, including with View, Inc. and Satellogic, Inc. , the companies with which the SPACs eventually merged.
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