Former securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Securities representative suspended and fined for alleged misleading testimony during an arbitration hearing
FINRA Rule 2010
Concorde Investment Services censured and fined for alleged unregistered distribution of securities
Three private placement offerings were sold without the firm “having established pre-existing, substantive relationships with the offerees”.
In addition the firm’s supervisory systems were not reasonably designed to detect improper general solicitations. Emails marketing the offerings in question were sent to hundreds of recipients without the firm taking any steps to verify that these had a pre-existing, substantive relationship with the firm.
A disgorgement of $58,278 plus interest has been ordered along with an undertaking for the remediation of the issues.
FINRA Rule 2010 FINRA Rule 3110
Former securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Former products representative charged with allegedly failing to appear for testimony as requested by FINRA staff
Note that this is a Disciplinary Proceeding and not an AWC.
FINRA Rule 2010 FINRA Rule 8210
Former products representative suspended and fined for allegedly forging/falsifying customer signatures
FINRA Rule 2010 FINRA Rule 4511
LPL Financial censured and fined for allegedly failing to effectively supervise the transmittal of customer funds
The shortcomings in the firm’s systems and procedures were extensive and included:
- inadequate reviews of checks issued from customer accounts;
- failure to respond to red flags, including those raised by the firm’s compliance personnel;
- inadequate systems and procedures for the verification and supervision of electronic signatures.
Because the failings led to the conversion and misappropriation of customer funds a restitutionary payment of $100,000 has also been ordered.
FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 4511 Exchange Act § 17(a) Exchange Act Rule 17a-3
Former securities principal suspended and fined for allegedly engaging in outside business activity, including private securities transactions, not approved by his employer
FINRA Rule 2010 FINRA Rule 3270 FINRA Rule 3280
OCP Capital censured and fined for the alleged filing of inaccurate FOCUS reports and for compliance problems stemming from an unregistered individual performing certain functions
Some personal expenses were misclassified as firm’s expenses in the general ledger resulting in the keeping of inaccurate books and records and the filing of inaccurate FOCUS reports.
In addition the firm permitted an unregistered person to engage “in the management and supervision of the firm’s employees, including a registered principal”. The person was also involved in the firm’s finances, employment decisions and securities business affairs, which FINRA deemed to be tantamount to acting as a principal of the firm.
The unregistered individual was permitted to use an outside email account to conduct firm business and the firm failed to preserve those communications, which involved both firm employees as well as third parties.
The firm is also subject to an undertaking requiring it to remediate the identified issues, including the provision of evidence and written certification of this to FINRA.
Exchange Act § 17(a) Exchange Act Rule 17a-3 Exchange Act Rule 17a-4 Exchange Act Rule 17a-5 FINRA Rule 1210 FINRA Rule 1220 FINRA Rule 2010 FINRA Rule 4511 NASD Rule 1021
Default Decision grants the motion to expel BrokerBank Securities for allegedly permitting an unregistered and disqualified person to associate with the firm, act in a registered capacity and share in commissions
The firm’s majority owner and CEO/CCO will also be barred as a result of the alleged rule breaches, all connected to an individual who acted for the firm after having consented to a suspension from associating with a FINRA members.
Note that this is a Default Decision and not an AWC.
FINRA By-Laws Article III, Section 3 FINRA Rule 1210 FINRA Rule 2010 FINRA Rule 2040 FINRA Rule 8311 NASD Rule 1031
Instinet censured and fined for allegedly failing to ensure that ISOs routed to market centers met regulatory requirements
Multiple programming and system errors resulted in several issues with intermarket sweep orders (ISOs), including the failure to capture protected quotation data. The problems led to the routing of orders that potentially traded through protected quotations.
The firm’s supervisory systems did not detect the potential trade-throughs and where red flags were raised in connection with connectivity issues, they were ignored and remained unremediated until after regulatory inquiries were made.
Exchange Act Rule 611(c) FINRA Rule 2010 FINRA Rule 3110
Securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |