G1 Execution Services censured and fined for allegedly failing to timely report transactions
As a result of significant increases in the volume of orders executed by the firm in late 2019, the firm’s order management system (OMS) failed to report certain trades within 10 seconds during periods of high trading volume. A total of 1,618,525 transactions in NMS securities were reported late and “demonstrated a pattern and practice of late trade reporting.”
In December 2020 the firm transitioned to a new OMS. As a result of “technological issues related to the transition” the firm did not report certain transactions in OTC securities within 10 seconds of execution. And 125,446 transactions were reported late as a result of the problem.
FINRA Rule 2010
FINRA Rule 6380A
FINRA Rule 6380B
FINRA Rule 6622
Securities representative suspended and fined for allegedly using an unauthorized personal email account to communicate with firm’s customers
The firm’s WSPs prohibited the use of personal email accounts for communications connected with its securities business.
Despite acknowledging the WSPs, the representative used his personal email account to send and receive hundreds of communications with the firm’s customers. These included discussions of investments.
The representative did not provide copies of the communications to the firm, which caused the firm to maintain incomplete books and records.
FINRA Rule 2010
FINRA Rule 4511
Former products representative suspended and fined for allegedly forging customer signatures
The representative forged and backdated the variable insurance applications and other documents of four customers. None of the customers authorized the signing or were aware of the activity.
The representative also exchanged text messages with customers regarding securities, using his personal cell phone. This despite a prohibition by the firm against using text messages to communicate with customers about its securities business.
The representative did not provide copies of the communication to the firm, which caused it to maintain incomplete books and records.
FINRA Rule 2010
FINRA Rule 4511
Former securities representative barred for refusing to provide documents and information and to appear for on-the-record testimony
FINRA Rule 2010
FINRA Rule 8210
Former securities trader barred for refusing to appear for on-the-record testimony
FINRA Rule 2010
FINRA Rule 8210
Securities representative suspended and fined for allegedly falsely certifying that he had personally completed the continuing education required to hold an insurance license
Another person had completed 15 hours of insurance continuing education on his behalf.
FINRA Rule 2010
Former securities representative suspended and fined for alleged investment recommendations that were not in the customer’s best interest
The representative recommended recommendations resulting in 77% of the customer’s net worth becoming concentrated in alternative investments.
This despite a moderate risk tolerance and investment objectives that included preservation of capital, current income and the funding of retirement.
The representative also used his personal phone to communicate with the customer via text messages about securities. The messages were not provided to the firm for review or retention.
The communications included a message that was “unbalanced” as it “made only positive claims about the prospects of recovering the customer’s investment, and did not address the potential for loss.”
The statement made in the message was also “promissory and misleading because it guaranteed the customer would recover her money.”
A disgorgement of $23,905.81 plus interest has been ordered.
FINRA Rule 2010
FINRA Rule 2210
FINRA Rule 4511
SEA 1934 Rule 15l-1
SEC Reg BI
Securities representative suspended and fined for allegedly submitting a false attestation
The firm received an email from an imposter posing as a firm customer requesting a $500,000 wire transfer from the customer’s account.
The representative signed a “change of ownership” form in which he falsely attested that he had spoken with the customer about the requested transfer (as was required by firm policy).
No such conversation took place, but as a result of the false statement the wire transfer was processed and the funds transferred out of the customer’s account to an unknown third party.
FINRA Rule 2010
FINRA Rule 4511
Former securities representative suspended and fined for allegedly sending and receiving funds through his personal account despite red flags suggesting the funds were related to illegal activity
The representative agreed to receive and send funds through his personal checking account at the request of a childhood friend.
He accepted deposits from an individual he did not know and made outgoing transfers to multiple individuals he did not know.
He did not question the explanation for the transfers provided by the friend, conduct any due diligence on the counterparties involved or raise questions about the pattern of suspicious deposits.
He retained a proportion of the deposited funds for his personal use.
FINRA Rule 2010
IBN Financial Services censured and fined and its compliance officer suspended and fined for allegedly failing to reasonably supervise a registered representative’s recommendations
The issues stemmed from a representative’s recommendations of illiquid, non-traded alternative investments to two customers.
The investment recommendations were approved by the firm and the compliance officer despite the presence of red flags suggesting that they were not in the customer’s best interest.
When approving the recommendations the firm and compliance officer failed to conduct any additional reviews or steps to ensure that the recommendations were appropriate.
The firm has agreed to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified.
And the compliance officer has consented to attending and completing 20 hours of continuing education concerning Reg BI.
FINRA Rule 2010
FINRA Rule 3110
SEA 1934 Rule 15l-1
SEC Reg BI
Former securities representative suspended and fined for allegedly engaging in 32 instance of “spoofing” when trading US Treasury securities
FINRA Rule 2010
SA 1933 Rule 17
Former securities representative suspended and fined for allegedly exercising discretion without prior authorization in three customer accounts
FINRA Rule 2010
FINRA Rule 3260
Former securities representative charged with allegedly failing to disclose a felony charge in Form U4
FINRA Rule 1122
FINRA Rule 2010
FINRA By-Laws Article V
Former securities representative charged with allegedly failing to provide documents and information or appear for testimony
FINRA Rule 2010
FINRA Rule 8210
Former products representative suspended and fined for allegedly improperly retaining the non-public personal information of customers
In anticipation of departing the firm the representative transferred copies of thousands of files containing customer information from the firm’s systems to her personal cloud storage site.
FINRA Rule 2010
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |