South Florida Arbitration & Litigation Lawyer Blog
South Florida FINRA Securities Investment Fraud and Mismanagement Arbitration Attorney, Russell L. Forkey, Esq.
January, 2011:
First American Capital and Trading Corporation (CRD #118812, Boca Raton, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $22,500. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to maintain its minimum net capital requirement when it erroneously carried short sales in U.S. Treasury bonds, totaling $100 million in its proprietary account instead of executing a long position of $50,000,000 and a short position of $50,000,000, which resulted in a net deficiency of $5,584,444. The findings stated that the firm failed to make, keep and preserve the order tickets for the bond transactions that led to the net capital deficiency. The findings also stated that the firm failed to establish, maintain or enforce written supervisory procedures reasonably designed to supervise and monitor the trading limits for its fixed income traders, which led to the undetected and uncorrected U.S. Treasury bond transactions that caused the firm’s net capital to be deficient. (FINRA Case #2007009194301)