Paul McCabe Fined $3 Million by SEC

Paul McCabe (CRD #: 2751063), a broker formerly registered with Olympus Securities, has been barred by the SEC and FINRA, according to his BrokerCheck record, accessed on February 12, 2025. Read on if you want to know more about his alleged conduct as a broker.

Bar by SEC

On January 17, 2025, the Securities and Exchange Commission entered cease-and-desist proceedings against Paul McCabe and PMAC Consulting, alleging that Paul McCabe acted as an unregistered broker through the firm that he owned.

In December 2016, Paul McCabe consented to a bar by FINRA from acting as a broker or associating with FINRA-registered broker dealers. However, the SEC alleged that Paul McCabe continued to broker securities transactions between stockholders in private companies that were expected to perform an initial public offering (IPO) and funds that were seeking to acquire pre-IPO shares.

Between October 2018 and June 2023, Paul McCabe allegedly received more than $16 million in compensation related to these transactions through PMAC Consulting. These transactions allegedly involved several funds and nearly 100 sellers of shares.

The SEC alleged that Paul McCabe and PMAC Consulting violated Section 15(a) of the Securities Exchange Act of 1934 by acting as unregistered brokers.

Securities Exchange Act of 1934

Section 15(a) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from engaging in or inducing the purchase or sale of securities.

Sanctions

The SEC barred Paul McCabe from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSROs)

The SEC also barred him from participating in penny stock offerings. These bars took effect on January 17, 2025.

According to his detailed BrokerCheck page, Paul McCabe was ordered to cease and desist from future violations of Section 15(a) of the Securities Exchange Act of 1934 and to pay a fine of $3 million, jointly and severally with PMAC Consulting.

Bar by FINRA

On December 8, 2016, Paul McCabe consented to the entry of findings that he allegedly refused to provide information and documents requested by FINRA.

According to a Letter of Acceptance, Waiver & Consent (AWC), FINRA allegedly made these requests as part of a cycle examination of his previous firm, Olympus Securities, which he had left in October 2016. FINRA’s cycle examinations are regular evaluations of brokerage firms’ compliance with securities laws and regulations.

The AWC concluded that the alleged refusal to provide documents and information violates FINRA Rules 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply records, information, and testimony upon request by FINRA.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

FINRA permanently barred Paul McCabe on December 8, 2016. You can access the AWC here.

Background Information

Paul McCabe has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Securities Agent State Law Examination – Series 63

In the past, he has worked for the following firms:

• Olympus Securities (CRD#:114050)
• Halcyon Cabot Partners (CRD#:32664)
• Alexander Capital (CRD#:40077)
• Felix Investments (CRD#:148441)
• SecondMarket (CRD#:136962)
• Centennial Financial Services (CRD#:15819)

Kurta Law Can Help

If you worked with Paul McCabe and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.