Investment Fraud and Mismanagement FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
Global Strategic Investments, LLC (CRD #117028, Miami, Florida) and Cesar Gabriel Hernandez (CRD #3249722, Registered Principal, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $150,000. Hernandez was fined $25,000 and suspended from association with any FINRA member in any principal capacity for three months. Without admitting or denying the findings, the firm and Hernandez consented to the described sanctions and to the entry of findings that the firm, acting through Hernandez, failed to adequately implement or enforce its anti-money laundering (AML) compliance program, and to otherwise comply with their AML obligations, by failing to identify and analyze numerous transactions to determine if they were, in fact, suspicious and were required to be reported on a Suspicious Activity Report (Form SAR-SF). The findings stated that the firm and Hernandez permitted foreign customers to deposit funds into their accounts and, within days and/or weeks, disburse funds from their accounts to first and third parties, and in certain instances in amounts slightly below $10,000; although one customer told Hernandez he did this to avoid questions from his bank, the firm and Hernandez permitted the activity to continue and did not file a Form SAR-SF until approximately one year after the activity occurred. The findings also stated that the firm, acting through Hernandez, failed to establish and implement customer identification procedures (CIP) for verifying a customer’s identity.
The suspension is in effect from November 15, 2010, through February 14, 2011. (FINRA Case #2009016158801).