Securities Regulation Daily Wrap Up, ENFORCEMENT—S.D.N.Y.: SEC obtains final judgment against former New York broker in $2.4 million fraud scheme, (Apr 24, 2026)
Law Firms Mentioned:The Law Firm of Keith S. Barnett P.C.
By Kristin J. Angelino, J.D.
The defendant misappropriated approximately $2.4 million from an elderly customer of hers and used the funds for personal expenses and to purchase securities in her own brokerage account.
The U.S. District Court for the Southern District of New York has entered a final judgment in a lawsuit brought by the SEC against Clarice Saw, a former registered representative at a New York broker-dealer, whom the Commission had charged with engaging in a fraudulent scheme and misappropriating approximately $2.4 million from a customer. The final judgment permanently enjoined Saw from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5, and ordered her to pay disgorgement of $640,587.30, plus prejudgment interest of $98,144.04 and a civil penalty of $640,587.30. (SEC v. Saw, No. 1:23-cv-06573 (S.D.N.Y. Apr. 15, 2026)).
Misappropriation for personal use. The SEC’s complaint was filed on July 28, 2023, and alleged that between December 2021 and March 2022, while Saw was associated with a registered broker-dealer, she engaged in a fraudulent scheme and misappropriated approximately $2.4 million from one of her customers, an elderly retiree who did not speak, read or understand English. According to the complaint, Saw has the same ethnic background as her customer and communicated with him in his native language.
As alleged, Saw carried out her scheme by (1) obtaining a power of attorney, in English, from the customer by falsely representing that it was a healthcare proxy; (2) falsifying internal records at the broker-dealer; and (3) without the customer’s consent, liquidating all of the customer’s securities holdings and transferring all of the proceeds to Saw’s personal bank and brokerage accounts.
The complaint further alleged that Saw used part of the misappropriated funds for her personal expenses, including approximately $100,000 in car and mortgage payments and more than $46,000 of cash withdrawals. Saw also used additional misappropriated funds to purchase securities in her personal brokerage account.
Summary judgment granted. On July 25, 2025, the court granted the SEC’s motion for summary judgment, finding Saw liable for violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. On March 27, 2026, the court granted the SEC’s motion for monetary and injunctive relief against Saw. The final judgment permanently enjoined Saw from violating the above-stated provisions of the federal securities laws, and further ordered her to pay disgorgement of $640,587.30, prejudgment interest of $98,144.04, and a civil penalty of $640,587.30.
The case is No. 1:23-cv-06573.
Judge: Gardephe, P.
Attorneys: Jack Kaufman for the SEC. Keith Scott Barnett (The Law Firm of Keith S. Barnett P.C.) for Clarice Saw.
LitigationEnforcement: Enforcement FraudManipulation NewYorkNews