Vision Financial Markets censured and fined for allegedly over-tending shares
16,300 shares in a partial tender offer were over-tendered because the company did not account for “relevant short call options positions”. 1,197 of the over-tendered shares were accepted.
Disgorgement of $20,553 has been ordered of which $6,851 is payable to FINRA.
Exchange Act Rule 14e-4 FINRA Rule 2010 FINRA Rule 3110
Former securities representative suspended and fined for allegedly cheating on an exam
The former representative had access to study materials during an unscheduled exam break.
FINRA Rule 1210.05 FINRA Rule 2010
Former securities representative suspended and fined for alleged material misrepresentations and omissions in connection with an offer and sale
The representative and his partner were responsible for managing the business affairs of two entities, Hall Arts and Bishop’s Lodge, on behalf of investors. They had exclusive control of the entities bank accounts and were also responsible for and approved the content of private placement memoranda. The representative:
- failed to inform investors that money had been transferred from Hall Arts to fund Bishop’s Lodge (the transfer was not a permissible use of investor proceeds);
- negligently allowed the value of the transfers from Hall Arts to be included in two supplemental private placement offerings issued by Bishop’s Lodge; and
- negligently failed to discover and disclose his partners use of Hall Arts and Bishop’s Lodge proceeds for the payment of certain expanses of another unrelated entity.
FINRA Rule 2010 Securities Act Section 17(a)(2)
Former securities representative suspended and fined for allegedly forging or falsifying customer signatures
The representative electronically singed the names of 14 customers on 24 documents. Two customers’ names were signed on five documents without their prior permission.
FINRA Rule 2010 FINRA Rule 4511
Securities representative suspended and fined for allegedly mischaracterising 1,586 transactions in a customer’s accounts
The transactions were marked as unsolicited when they had actually been solicited by the representative.
FINRA Rule 2010 FINRA Rule 4511
Landolt Securities censured and fined for alleged electronic communication review failings
The firm’s WSPs did not:
- identify the personnel responsible for reviewing emails;
- state how frequently reviews should occur;
- provide reasonable guidance on how to conduct reviews and address issues identified;
- require that reviews be conducted or supervised by a registered principal;
- include any criteria for identifying potentially problematic emails;
- describe what issues or red flags reviewers should be reviewing for; and
- explain whether and how problematic emails should be escalated.
The firm has agreed to an imposition of an undertaking requiring a member of its senior management to certify in writing the remediation of the issues identified.
This case is also covered in a more detailed GRIP article.
FINRA Rule 2010 FINRA Rule 3110
Former securities representative suspended and fined for allegedly engaging in outside business activity without providing written notice to or approval from his firm
FINRA Rule 2010 FINRA Rule 3270
RCX Capital Group censured and fined for alleged issues stemming from the preparation and distribution of an offering document to the public
The document contained:
- contradictory statements regarding the offering’s minimum contingency amount; and
- a misleading statement regarding the presence of an escrow account.
In addition the firm failed to file with FINRA an amendment that materially changed the terms of the offering.
FINRA Rule 2010 FINRA Rule 5123
Former securities representative suspended and fined for allegedly engaging in outside business activity without providing written notice to or approval from his firm
FINRA Rule 2010 FINRA Rule 3270
Former securities representative suspended and fined for allegedly participating in private securities transactions without providing notice to his firm
FINRA Rule 2010 FINRA Rule 3280
Wells Fargo Securities censured and fined for alleged trade confirmation failings
The firm sent 2.27m trade confirmations to customers that failed to disclose that the prices reported for orders effected via multiple executions were average prices.
The system error that led to this issue went undetected for five years because the WSPs in place did not “include a review to ensure that the firm included average-price disclosures in confirmations for orders”.
FINRA Rule 2010 FINRA Rule 3110
Rockefeller Financial censured and fined for alleged failures connected with retail customer confirmations for municipal securities and corporate and agency debt securities transactions
Mark-up and mark-down information for 793 municipal securities transactions and 344 corporate or agency debt securities transactions was not disclosed in the respective retail customer confirmations.
The firm did not have any policies and procedures in place in connection with disclosures required on retail customer confirmations and did not conduct any reviews of these.
FINRA Rule 2010 FINRA Rule 2232 FINRA Rule 3110 MSRB Rule G-15 MSRB Rule G-27
Former securities representative suspended for alleged excessive trading in customer accounts
The representative recommended a series of excessive and unsuitable trades to eight customers, three of whom were seniors. The trading was not in the best interest of the customers given their investment profiles.
The representative also failed to disclose a customer complaint on Form U4.
FINRA By-Laws, Article V, Section 2 FINRA Rule 1122 FINRA Rule 2010
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |