SEC Penalizes Ally Financial for Failing to Disclose It Profits From ‘Cash-Enhanced’ Robo Account

AI Briefing

• – SEC fines Ally Financial $20 million for failing to disclose profits from 'cash-enhanced' robo accounts.
• – Company must pay $10 million in disgorgement and $3.5 million in prejudgment interest.
• – SEC alleges Ally misled investors about how robo accounts generated returns.