The U.S. Securities and Exchange Commission on Tuesday said TradeZero America Inc. and co-founder Daniel Pipitone settled charges they falsely told customers that the broker/dealer did not restrict customers' purchases of so-called meme stocks, when in fact they did.

TradeZero and Pipitone agreed to retain an independent compliance consultant and pay respective penalties of $100,000 and $25,000, without admitting or denying the charges, the SEC said.