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Dec 15, 2015

Broker-Dealer Settles Variable Annuity Case for $475k

By |December 15th, 2015|Failure To Supervise, FINRA, FINRA News, Press Releases & News, Variable Annuity|

Comprehensive Asset Management and Servicing Inc. ("CAMS") has agreed to pay $475,000 to settle claims that the firm failed to reasonably supervise representatives' sales of variable annuities, among other complaints. From February 2008 and 2012 the New Jersey broker-dealer "failed to establish, maintain and enforce a supervisory system and procedures reasonably designed to supervise variable [...]

Dec 8, 2015

FINRA Charges Cantone Research Inc.’s President With Fraud

By |December 8th, 2015|Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Press Releases & News, Securities Law Violations|

FINRA filed a complaint against Cantone Research Inc. ("CRI") of Tinton Falls, New Jersey and its President, Anthony J. Cantone, charging fraud in connection with the sales and subsequent extensions of more than $8 million of certificates of participation ("COP") in five promissory notes. The complaint alleges that four of the five pertinent promissory notes [...]

Nov 11, 2015

History Of Investors Capital Corporation’s Malfeasance

By |November 11th, 2015|Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Ponzi Scheme, Press Releases & News, Private Placements, Securities Law Violations, Suitability|

Investors Capital Corporation, a dually-registered independent Broker/Dealer and Investment Advisory firm, has a long history of malfeasance. In the summer of 2014, Patricia S. Miller, a former financial adviser with ICC, was arrested for orchestrating a massive Ponzi scheme that cost her clients millions in savings. Through her scheme, she obtained $4.1 million from over [...]

Nov 6, 2015

FINRA Wants ‘Significant Fine’ From MetLife For Variable Annuity Sales

By |November 6th, 2015|Failure To Supervise, FINRA, FINRA News, Misrepresentation and Fraud, Press Releases & News, Suitability, Variable Annuity|

MetLife Inc., the biggest life insurer in the country, said that FINRA will seek a "significant fine" from the company's broker-dealer unit as part of an investigation into potential violations relating to variable annuities. MetLife stated that it is cooperating with the investigation. The examination centers on possible violations "regarding alleged misrepresentations, suitability, and supervision [...]

Nov 5, 2015

FINRA Interested In Disciplining, Not Punishing

By |November 5th, 2015|Failure To Supervise, FINRA, FINRA News, Press Releases & News, Selling Away, Suitability|

FINRA emphasized that the regulatory authority's first goal is the "blocking and tackling" of enforcing its rules, not collecting massive financial penalties, stated Russell Ryan, FINRA Senior Vice President and Deputy Chief of Enforcement, at the Securities Docket Securities Enforcement Forum in Washington. FINRA does levy some hefty fines every once in a while, but [...]

Oct 20, 2015

FINRA Fines Twelve Firms A Combined $6.7M

By |October 20th, 2015|Failure To Supervise, FINRA, FINRA News, Press Releases & News|

FINRA ordered twelve firms to pay restitution over $4 million and fines over $2.6 million for failing to apply sales charge discounts to customers' purchases of Unit Investment Trusts ("UITs") and relevant supervisory failures. The firms sanctioned include First Allied Securities, Inc. of San Diego, CA; Fifth Third Securities, Inc. of Cincinnati, OH; Securities America, Inc. [...]

Oct 15, 2015

FINRA Fines Six IBDs For Failing To Discount Large REIT Sales

By |October 15th, 2015|Failure To Supervise, FINRA, FINRA News, Non Traded Real Estate Investment Trust, Press Releases & News, REIT, Securities Law Violations|

Voya Financial Advisors Inc., Transamerica Financial Advisors Inc. and four other independent broker-dealers failed to give clients appropriate discounts on large sales of nontraded real estate investment trusts and business development companies. In turn, FINRA fined the six over $500,000 combined. The fines comes as part of FINRA's crackdown on firms not properly giving their customers [...]

Oct 13, 2015

FINRA Fines Santander Securities LLC $6.4 Million For Supervisory Failures

By |October 13th, 2015|Bonds, Failure To Supervise, FINRA, FINRA News, Press Releases & News|

FINRA mandated that Santander Securities LLC pay about $4.3 million in restitution to a number of clients who were solicited to buy Puerto Rican Municipal Bonds. Further, the firm will pay restitution of $121,000 and make offers of rescission to buy back the securities sold to particular customers impacted by the firm's failure to supervise [...]

Oct 8, 2015

FINRA Expels Halcyon Cabot Partners And Bars CEO And CCO

By |October 8th, 2015|Churning, Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Press Releases & News, Private Placements, Securities Law Violations|

FINRA expelled New York-based Halcyon Cabot Partners, Ltd., and barred Chief Executive Officer Michael Morris and Chief Compliance Officer Ronald Heineman from the securities industry, for fraud, sales practice abuses, and widespread supervisory and anti-money laundering failures. FINRA found that Halcyon, Morris and Heineman engaged in a scheme to conceal a kickback of private placement fees. [...]

Oct 1, 2015

FINRA Fines UBS Puerto Rico $18.5M

By |October 1st, 2015|Failure To Supervise, FINRA, FINRA News, Press Releases & News, Securities Law Violations, UBS|

FINRA censured and fined UBS Financial Services Incorporated of Puerto Rico $7.5 million for supervisory failures pertaining to the suitability of transactions in Puerto Rican closed-end funds ("CEF") shares. Further, the regulatory agency ordered UBS to pay about $11 million in restitution to 165 customers who were forced to realize losses on their CEF positions. FINRA [...]

Sep 24, 2015

Investors Lose $11.7 Million In Risky Hedge Fund Through Lincoln Financial

By |September 24th, 2015|Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Private Placements, Securities Law Violations, Suitability|

According to a FINRA Letter of Acceptance, Waiver and Consent ("AWC"), between about October 2008 and April 2009, registered representatives in two of Lincoln Financial Advisors Corporation (“LFA”) branch offices allegedly recommended that customers invest in a hedge fund offered as a sub-account to a private placement variable annuity (the ”PPVA”). The Hedge Fund engaged [...]

Sep 17, 2015

FINRA August 2015 Disciplinary Actions: Part III

By |September 17th, 2015|Failure To Disclose, Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, Suitability|

Edward D. Jones & Co., L.P. of St. Louis, Missouri submitted a letter of acceptance, waiver, and consent that censured the firm and fined it $10,000. FINRA found that it failed to report the right trade execution time for transactions in TRACE-eligible securitized products to TRACE and failed to show the right execution time on [...]

Sep 16, 2015

FINRA August 2015 Disciplinary Actions: Part II

By |September 16th, 2015|Failure To Supervise, FINRA, FINRA News, Press Releases & News, Private Placements, SEC, Securities Law Violations|

Newbridge Securities Corporation of Fort Lauderdale, Florida submitted a letter of acceptance, waiver, and consent that censured the firm, fined it $22,500, and mandated that it change its written supervisory procedures. According to FINRA's findings, Newbridge failed to report information pertaining to municipal securities transactions for clients to a real-time transaction reporting system within fifteen minutes [...]

Sep 15, 2015

FINRA August 2015 Disciplinary Actions: Part I

By |September 15th, 2015|Bonds, Failure To Supervise, FINRA, FINRA News, Press Releases & News, SEC, Securities Law Violations, Short-Selling|

Dempsey Lord Smith, LLC and Jerry Eskel Dempsey, Jr. of Rome, Georgia submitted a letter of acceptance, waiver and consent ("AWC") in which the firm was censured and fined $10,000. Dempsey is joint and severally liable for half of that with the firm. Similarly, Dempsey was fined $10,000, half of which the firm is joint [...]

Aug 17, 2015

FSC Securities To Pay $1.28M In Ponzi Case

By |August 17th, 2015|Atlanta, Banking Fraud, Broker Check, Failure To Supervise, FINRA, FINRA News, Fraud, Georgia, Misrepresentation and Fraud, Ponzi Scheme, Press Releases & News, Securities Arbitration, Securities Law Violations, Selling Away, Suitability|

FSC Securities will pay a $1.28 million arbitration award to investors who were defrauded by Aubrey Lee Price, who had feigned his death in 2012 to avoid being investigated for his $40 million Ponzi scheme. FSC, a broker-dealer in the AIG Advisor Group, was alleged by 8 investors to have failed to supervise a number [...]

Aug 14, 2015

Alabama Man Sentenced For Ponzi Scheme

By |August 14th, 2015|Alabama, Alabama Securities Commission, Failure To Supervise, Fraud, Joseph Borg, Misrepresentation and Fraud, Ponzi Scheme, Press Releases & News, Securities Arbitration, Securities Law Violations|

Bryan Anderson, a former broker from Hoover, Alabama, was sentenced yesterday to seven years and three months in federal prison after pleading guilty to operating a Ponzi scheme that defrauded investors out of over $3 million. U.S. District Court Judge Virginia Hopkins also ordered Anderson to pay restitution of $3,068,614 plus interest to his victims. [...]

Aug 14, 2015

Edward Jones To Pay $20M For Bond Overcharges

By |August 14th, 2015|Bonds, Failure To Supervise, Press Releases & News, SEC, Securities Law Violations|

Edward D. Jones & Co. will pay $20 million to settle allegations by the Securities Exchange Commission that the firm overcharged its retail customers on new municipal bond sales. The SEC claims that between 2009 and 2012 Edward Jones allegedly overcharged its clients by $4.6 million at minimum by offering the bonds at a higher [...]

May 14, 2015

UBS Loses Arbitration, Forced To Pay $200k

By |May 14th, 2015|Failure To Supervise, Fiduciary Duties, FINRA News, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, Securities Arbitration, Securities Law Violations, Suitability, UBS|

UBS lost an arbitration case this week pertaining to the offer and sale of a number of Puerto Rico Fixed Income and Bond funds. The Claimant in the arbitration asserted causes of action for violation of the Puerto Rico Uniform Securities Act, securities fraud, constructive fraud, breach of contract, negligence, negligent supervision, failure to supervise, [...]

May 13, 2015

LPL Financial Fined $11.7M For ‘Widespread Supervisory Failures’

By |May 13th, 2015|Failure To Supervise, FINRA News, LPL, Non Traded Real Estate Investment Trust, Press Releases & News, REIT, Securities Law Violations, Variable Annuity|

FINRA ordered LPL Financial to pay $11.7 million in fines and restitution for what it called "widespread supervisory failures" pertaining to sales of complex products. According to the regulator authority, from 2007 to April 2015, LPL failed to adequately supervise sales of particular investments, such as exchange-traded funds, variable annuities, and nontraded real estate investment [...]

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