The following disciplinary actions were taken against both firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules:
Advisory Group Equity Services Ltd.
The Firm was fined $20,000 for failing to create and implement proper written supervisory procedures (“WSPs”) in regard to email review of newly hired Registered Representatives (“RRs”). It was found that newly hired RRs were using email addresses from the broker-dealers they were previously employed with and conducted business with these email addresses. It was also found that several new hires were approved to conduct business with prior employer email addresses.
Revere Securities LLC
The Firm was fined $25,000 for failing to accurately report municipal securities transactions to the Real-time Transaction Reporting System and for failing to implement proper supervisory procedures related to municipal securities transactions. Execution times for transactions were not correctly reported to the clearing firm and defaulted to the time of entry when, pursuant to the Firm’s WSPs, execution time should have been manually entered into the Firm’s clearing system. The Firm also failed to implement a supervisory system to properly review trade reporting to ensure reporting was done correctly. FINRA Case #2017052480701
Gonzalez was barred from association with any FINRA member for failing to notify his member firm of the new broker-dealer he was forming. It was found that Gonzalez bought office equipment, paid rent and raised capital from a customer of his Firm to start his new business without notifying his Firm. Gonzalez also provided false documents to FINRA during their investigation into the outside business activity. FINRA Case #2018057258602
Jay R. Weiser
Weiser was barred from association with any FINRA member for engaging in unapproved private securities transactions and for failing to provide on-the-record testimony and documents related to FINRA’s investigation. It was alleged that Weiser sold promissory notes and interest in a company without prior Firm approval. FINRA Case #2018058604101
Basnet was fined $5,000 and suspended for 45 days for participating in a private securities transaction without prior written approval from his Firm. It was found that Basnet participated in the purchase and sale of real estate with customers of his Firm and participated in the solicitation of the investments, deposited the money into accounts under his control and participated in land purchases. Basnet did not receive compensation for the transactions and customers were repaid their investment amount. FINRA Case #2017053590001
Barbara Bonnie Fox
Fox was suspended for three months for borrowing $14,000 from a customer when her member Firm’s WSPs specifically prohibited borrowing from customers. The Firm was notified of the borrowing when the customer advised that Fox had only repaid $600 of the funds borrowed. The customer was repaid fully when the Firm was made aware of the situation. It was also found that Fox falsely attested to not borrowing customer funds on the Firm’s attestation.
These cases along with others can be accessed by clicking this link.
Please contact an ARG Analyst with any questions regarding the matters discussed.