South Florida Arbitration & Litigation Lawyer Blog
Central Florida FINRA Investment and Securities FINRA Arbitration Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
January, 2011:
David William Dube (CRD #3041983, Registered Principal, St. Petersburg, Florida, formerly licensed with Peak Securities Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Dube consented to the described sanction and to the entry of findings that while serving as president and AML compliance officer for his member firm, he failed to implement an AML Compliance Program reasonably designed to achieve and monitor compliance with the Bank Secrecy Act, which resulted in suspicious activity occurring at the firm without being detected and reported. The findings stated that Dube failed to implement his firm’s AML procedures, which required him to monitor customers’ accounts and transactions for suspicious activity on a daily basis, to conduct investigations of suspicious activity upon detection of red flags, and to file a SAR-SF. The findings also stated that Dube served as the registered representative of record for the accounts in which red flags existed, and he did not identify any accounts as having suspicious activity. The findings also included that Dube failed to identify any red flags, did not conduct due diligence with respect to customers’ account activities and failed to file any SAR-SFs.
FINRA found that Dube exercised discretion in customers’ non-discretionary accounts without written authorization, and in each instance, he exercised discretion in the customers’ accounts as directed by an individual who was not an account owner. FINRA also found that Dube recommended, sold and approved the sale of approximately $830,000 of an offering to customers without conducting adequate due diligence, without having a reasonable basis for recommending the offering as a suitable product, and without enforcing the firm’s written supervisory procedures related to the sale of the offering. (FINRA Case #2008011713801).