Former securities representative suspended for allegedly making unsuitable recommendations to customers
The recommendations in question were connected to the unsuitable use of margin in trades, which resulted in the customers paying significant commissions, fees and interest. Because of the losses to customers a $75,000 restitution has also been imposed.
FINRA Rule 2010 FINRA Rule 2111
Products representative and principal suspended and fined for allegedly participating in private securities transactions without prior approval from his employer
FINRA Rule 2010 FINRA Rule 3280
SpeedRoute censured and fined for allegedly failing to put in place adequate supervisory procedures connected to market orders in new issues
The failings resulted in the acceptance of market orders for the purchase of shares in new issues prior to the commencement of the trading of these in the secondary market.
FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 5131
Goldman Sachs censured and fined for allegedly mismarking 60 million orders
The mismarking was the result of the implementation of a new automated trading software intended to simplify order flow. The absence of a line of code meant that marks from a parent order were not added to child orders routed to the market. In addition the misapplication of order marking logic to sell orders routed to a foreign affiliate led to some orders being inaccurately marked.
The mismarking of orders was also considered by FINRA to be a failure to establish and maintain a reasonably designed supervisory system that would enable the firm to comply with rules connected to accurate trade reporting.
Rule 200(g) of Regulation SHO Section 17(a) Securities Exchange Act 1934 Rule 17a-3 FINRA Rule 2010 FINRA Rule 4511 FINRA Rule 6182 FINRA Rule 6624
Former securities representative and principal barred for allegedly engaging in outside business activity without prior approval from his employer
The representative borrowed money from three customers despite rules and firm supervisory procedures prohibiting this except in very specific circumstances. In addition he acted as a co-executor of a customer’s estate without disclosing this to the firm. He attempted to settle subsequent customer complaints without the knowledge of his employer.
NASD Rule 2370 FINRA Rule 2010 FINRA Rule 3240
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |