Blog
Summaries and explanations of the latest regulatory compliance announcements, reports and related stories.
SEC Charges South Florida Spouses with $500M Scam
The Securities and Exchange Commission (SEC) filed an asset freeze to stop Lisa McElhone and Joseph W. LaForte’s fraudulent scheme worth $500 million. The scheme involved raising investor funds via unregistered securities offerings for Complete Business Solutions Group. Complete Business Solutions is a cash advance company that conducts business as Par Funding.
SEC Charges App Developers for Unregistered Security-Based Swap Transactions
Abra, a California-based trading app, and related firm Plutus Technologies Philippines Corp (“Plutus”), were charged by the Securities and Exchange Commission (SEC) on July 13, 2020. Abra and the related firm were charged for offering trades to non-registered investors and for failing to record all trades on a registered national exchange.
ThinkAdvisor Article: “CCO Hit by FINRA for Business Email Infractions”
ThinkAdvisor published an article on June 18, 2020 discussing the importance surrounding broker-dealers retention and review of electronic communications. FINRA took action against a firm’s Chief Compliance Officer (“CCO”) for failing to retain business communications and for using an outside email address to conduct business.
April 2020 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Firms Fined. ACS Execution Services, LLC. The Firm was fined $75,000 for reporting Reportable Order Events (ROE) to OATS that contained inaccurate or incomplete or improperly formatted data regarding events timestamped in milliseconds.
December 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. FIRMS FINED: World Equity Group. The Firm was fined $18,500 for failing to report to the Trade Reporting and Compliance Engine (“TRACE”).
November 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Individuals Barred: Hannah Burgess. Burgess was barred from association with any FINRA members for converting customer funds in the amount of $1,869.
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.
2019 Report on FINRA Examination Findings and Observations
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.
Cybersecurity Alert: Cloud-Based Email Account Takeovers (Information Notice 10.2.19)
Cybersecurity has become a continuous concern as hackers constantly create new ways of gaining private information from their targets, leaving firms vulnerable to attacks. Although firm’s are required to implement policies and procedures to protect customer information pursuant to SEC Regulation S-P, it is difficult to anticipate every threat or hazard that could occur.
'Tis the Season for an AML Inspection
As Summer has turned to Fall and you are getting around to that “To Do” list that may have hit the back burner all summer, it’s time to focus on your year-end compliance priorities. Plenty of people use a pen and paper, calendar, or online diary without any issues. And yet, a new to do list seems to emerge daily with important items being left behind.
September 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: Clearpool Execution Services, LLC. The Firm was censured and fined $473,000, of which $43,000 was paid to FINRA and the remaining paid to other self-regulatory organizations for failing to create and maintain a compliance system fulfilling FINRA requirements.
August 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: Robert W. Baird & Co. Incorporated (Milwaukee, Wisconsin). The Firm was censured and fined $150,000 for publishing seven (7) research reports authored by an analyst that was in employment discussions with the issuer.