Investment advisor to be suspended and fined for allegedly paying commission to an unregistered person
The unregistered individual solicited new brokerage customers through his Farsi-language radio and television shows and directed these to the investment adviser for transactions. In addition the individual also:
- attended meetings with the adviser and his customers;
- met with the adviser’s customers independently;
- made independent security recommendations to some of the adviser’s customers;
- maintained customer records for some of the customers in question.
In return the adviser paid the individual, directly or indirectly, at least $636,000 in transaction-based compensation.
This is an Order Accepting an Offer of Settlement and not an AWC
FINRA Rule 2010 FINRA Rule 2040
Securities representative suspended and fined for alleged involvement in undisclosed outside business activity
The representative also forwarded marketing materials to potential investors that included promissory statements, misleading comparisons and did not provide a fair and balanced discussion of risks.
FINRA Rule 2010 CAB Rule 221
Securities representative suspended and fined for allegedly effecting unauthorized transactions in a customer’s account
In addition the representative used his personal cell phone to communicate with firm customers via text message. The use of the personal device meant that the firm was unable to preserve those communications.
FINRA Rule 2010 FINRA Rule 4511 SEA 1934 Rule 17a-4
Former non-registered fingerprint person suspended and fined for alleged cheating on an exam
FINRA Rule 1210.05 FINRA Rule 2010
Janney Montgomery Scott censured and fined for allegedly failing to appropriately identify transactions in new issue securities reported to the MSRB
Specifically the firm failed to append the M020 indicator when reporting List Offering Price and Takedown transactions. The firm’s system “incorrectly reported the time of trade as the time it entered the transactions into its trade reporting system.” The firm had no supervisory system in place to identify and correct this issue.
The firm also failed to comply with its TRACE reporting obligations by:
- failing to report transactions;
- submitting non-reportable transactions;
- submitting inaccurate information;
- submitting inaccurate transactions;
- failing to put in place a supervisory system including WSPs.
FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 6730 MSRB Rule G-27
Former securities representative suspended and fined for allegedly exercising discretionary authority in customers’ accounts without written authorization
In addition the representative exchanged business-related communications with customers via text message using his personal cell phone. The use of the personal device meant that the firm was unable to preserve those communications.
FINRA Rule 2010 FINRA Rule 3260 FINRA Rule 4511 NASD Rule 2510
Securities representative suspended and fined for allegedly using his personal email account to send and receive communications regarding his securities business
Some of the communications involved discussions with customers about potentially high-risk investments including private investments in public equity deals. The use of the personal email account meant that the firm was unable to capture or maintain these communications.
FINRA Rule 2010 FINRA Rule 4511 SEC 1934 Rule 17a-4
Former securities representative suspended and fined for allegedly participating in private securities transactions without notifying his firm
A disgorgement of $13,000 plus interest has been ordered.
FINRA Rule 2010 FINRA Rule 3280
Jeffrey Matthews Financial Group censured and fined for allegedly charging unfair prices in corporate and municipal bond transactions
The firm also failed to establish a supervisory system that was reasonably designed to achieve compliance with fair pricing rules. The firm “in all cases used its own costs to determine the prevailing market price, even when its costs where not contemporaneous” and “used bids received as the prevailing market price” when purchasing from retail customers.
A restitutionary payment of $112,932.02 plus interest has also been ordered and the firm has consented to the imposition of an order requiring it to certify in writing the remediation of the issues identified.
FINRA Rule 2010 FINRA Rule 3110 MSRB Rule G-27
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
