The AG's Authority in Washington D.C.
DC Attorney General Brian Schwalb and the DC DISB have authority under the DC Securities Act (D.C. Code §31-5601.01 et seq.) to investigate broker-dealer practices. DC's unique position as both a political and regulatory center makes its AG a critical voice in any PFOF investigation.
The Harm to Washington D.C. Investors
DC retail investors — including government regulators, congressional staffers, and policy professionals — have a unique window into the gap between Citadel's political influence and regulatory action. DC residents deserve the same investor protections as residents of the 50 states.
Brian Schwalb has an estimated 150,000 DC retail investors — disproportionately employed in government and policy roles as potential complainants. This is not an abstract regulatory question — it is a matter of whether Washington D.C.'s chief law enforcement officer will protect the financial interests of Washington D.C. residents when federal regulators have failed to act.
The Griffin Political Context
Washington D.C. Attorney General Brian Schwalb should be aware of the documented political investment Kenneth Griffin has made in Washington D.C.. Griffin has given millions through national Republican organizations with significant DC-based operations to national Republican House and Senate super PACs that fund campaigns competing for DC-adjacent congressional seats. This political context does not determine what the AG should do — but it is relevant to understanding why federal and state regulators have been slow to act, and why an independent state investigation would be meaningful.
What the AG Should Investigate
- Whether PFOF arrangements between major discount brokers and Citadel Securities violate Washington D.C. consumer protection law by creating undisclosed conflicts of interest
- Whether Washington D.C. broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Washington D.C. retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Brian Schwalb
Washington D.C. residents can contact the Attorney General's office at https://oag.dc.gov to request investigation of PFOF-related broker-dealer practices affecting Washington D.C. investors.