October 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules.
Firm Fined
Dawson James Securities, Inc.
The Firm was fined $20,000 as a result of Registered Representatives contacting phone numbers that appeared on a national do not call list. Registered Representatives were instructed to use a network that automatically excluded numbers on the national do not call list and the Firm’s do not call list. It was found that in the Firm’s New York branch office Registered Representatives bypassed the network, therefore contacting numbers that were supposed to be excluded. FINRA Case #2018056290001
Seven Points Capital, LLC
The Firm was fined $20,000 for permitting proprietary traders to engage in equity trading when they were not properly qualified with passing the Series 7 exam. It was also found that General Securities Representatives failed to complete the Series 55 or Series 57 examinations in a timely manner. The Firm failed to comply with its Written Supervisory Procedures, which required registration for any person engaging in securities business. FINRA Case #2015043490102
Individuals Barred
Orlando Vargas
It was found that Vargas falsely claimed to have bought computer equipment totaling $2,000 for which he was reimbursed. Vargas submitted false documents for reimbursement pursuant to the firm sponsored program which reimburses employees for personal computer equipment. It was also found that Vargas provided false statements to FINRA regarding his use of the reimbursement program. FINRA Case #2018057528501
Bobby Wayne Coburn
It was found that Coburn failed to provide FINRA with documents related to his prior firm’s filing of his U5. Coburn’s prior firm stated in its U5 filing that he was involved in solicitation of clients to invest in unapproved private securities transactions and engaged in a customer complaint settlement related to the private securities transaction without the firm’s knowledge. FINRA Case #2019062319501
Individuals Suspended
Matthew David Albers
Albers was fined $5,000 and suspended from association with any member firm for 15 days. It was found that Albers exercised discretionary trading authority in customer accounts without prior written approval from the customer and his Firm. Albers placed trades without first speaking with the customer on the day of the transaction. Findings also stated that Albers lied on an annual compliance questionnaire and stated that he had not exercised discretionary approval when, in fact, he had. FINRA Case #2018056269001
Mengxuan Zhang
Zhang was fined $5,000 and suspended for one month for falsifying customer signatures. It was found that Zhang reused signature pages to expedite the transaction process, changing only the date on the existing form. This occurred without the permission of the client. FINRA Case #2018059411401
Click here to read the Disciplinary Brief in its entirety.
FINRA disciplinary actions can be very costly and harm your firm’s reputation. Please contact an ARG Analyst with any questions regarding the matters discussed, or to learn the benefits of our FINRA consulting services.
Key Topics: Broker dealer compliance, Investment banking compliance, FINRA compliance consultants, Broker dealer compliance consultants, Outsourced compliance officer, Broker dealer compliance consulting firms, Anti-money laundering test, Investment banking regulatory compliance, Broker dealer compliance requirements, Broker dealer compliance checklist, Broker dealer risk assessment, FINRA compliance training, Broker dealer compliance services, Money laundering test
