Former securities representative charged with allegedly failing to provide information and documents
FINRA Rule 2010
FINRA Rule 8210
Ceros Financial Services censured and fined for allegedly failing to terminate offerings following material changes to the offering terms
The firm served as the private placement agent to raise funds for the issuers’ product development efforts or general corporate purposes.
The issuer amended three private placement memoranda to eliminate or reduce minimum contingencies. This constituted a material change to the terms of the offering.
As a result of this change the firm was required to terminate the offering and return investor funds at the time of the amendment, but did not do so.
The firm’s WSPs inaccurately stated the requirements of SEA 1934 Rule 10b-9 and did not reasonably address the firm’s obligations connected with contingency offerings.
The firm has agreed to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified.
FINRA Rule 2010
FINRA Rule 3110
SEA 1934 Rule 10b-9
Former securities representative suspended and fined for allegedly failing to obtain written consent from his firm for the maintenance of an outside securities account
FINRA Rule 2010
FINRA Rule 3210
Former securities representative suspended and fined for allegedly participating in an outside business activity without notice to or approval from his firm
The representative also participated in private securities transactions without providing written notice of these to his firm.
FINRA Rule 2010
FINRA Rule 3270
FINRA Rule 3870
Securities principal suspended and fined for allegedly participating in private securities transactions without prior approval from his firm
Although his role in the management company was disclosed, the subsequent participation in the company’s efforts to raise capital was not.
FINRA Rule 2010
FINRA Rule 2150
Former securities representative barred for allegedly converting customer funds for his personal use
A total of $498,000 was improperly taken from two customers and deposited in the representative’s accounts.
FINRA Rule 2010
FINRA Rule 2150
Securities representative suspended for alleged excessive trading in customer accounts
The representative exercised de facto control over the customer accounts and engaged in trading that was excessive, unsuitable and not in the best interest of the customers.
A restitutionary payment of $27,415.75 plus interest has been ordered.
FINRA Rule 2010
FINRA Rule 2111
SEA 1934 Rule 15l-1
SEC Reg BI
Former products representative suspended and fined for allegedly failing to disclose a customer complaint and settling this away from his firm
FINRA By-Laws Article V, section 2(c)
FINRA Rule 1122
FINRA Rule 2010
Wall Street Access censured and fined for allegedly failing to ensure that its intermarket sweep orders (ISOs) met key requirements
The firm experienced three separate issues with its order management system (OMS) that routed ISOs.
Despite a warning from FINRA, the firm’s systems, policies and procedures remained inadequate to address these problems between October 2019 and April 2021.
As a result of the various problems, certain ISOs were not appropriately routed to trading venues, which led to route-throughs and trade-throughs in protected quotes.
FINRA Rule 2010
FINRA Rule 3110
SEA 1934 Rule 611
SEA 1934 Regulation NMS
SEC Regulation NMS
Former securities representative barred for allegedly refusing to produce information
FINRA Rule 2010
FINRA Rule 8210
Securities representative suspended and fined for alleged unauthorized transactions in trust accounts
The representative made 15 fund transfers from trust accounts after receiving verbal instructions from one of the customers.
The customers in question were not authorized to direct these fund transfers and the trustee complained after the transfers had been made.
FINRA Rule 2010
Former securities representatives suspended for alleged unsuitable trading in customer accounts
The representative made trading recommendations that were inconsistent with the investment profiles of the customers and resulted in losses and customer complaints.
The representative also exercised discretion in customer accounts without receiving written authorizations from the customers in question.
And, finally, the representative mismarked some solicited trades as unsolicited.
FINRA Rule 2010
FINRA Rule 4511
SEA 1934 Rule 15l-1
SEC Reg BI
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
