Yesterday, FINRA fined Monex Securities Inc. $1.1 million plus interest in disgorgement of commissions obtained by unregistered foreign individuals who sold securities for the firm. FINRA imposed an additional fine of $175,000 for not registering the foreign representatives and for related supervisory deficiencies over a two and a half year span. Also, Monex’s President and Chief Compliance Officer, Jorge Martin Ramos Landero, has been suspended from acting in a principal capacity for forty-five days and was fined $15,000.

To comply with FINRA’s rules, associated individuals engaged in the investment banking or securities business must be registered under the appropriate category of registration. Additionally, the individuals must pass the appropriate qualification exam.

According to FINRA, Monex’s CCO entered an agreement on behalf of the company with its Mexican parent company that allowed a number of employees to conduct securities business on Monex’s behalf by collecting client information needed to open account, making investment recommendations, and transmitting orders.

Monex paid these individuals transaction-related compensation. Yet, none of them were registered in any capacity with FINRA. Monex also failed to establish, maintain and enforce supervisory systems and written procedures to ensure compliance with applicable securities laws and regulations.

Monex neither admitted nor denied the charges but consented to the entry of FINRA’s findings.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.