South Florida Arbitration & Litigation Lawyer Blog
Manhattan Beach Trading Financial Services dba MB Trading – South Florida Negligent Supervision FINRA Arbitration and Litigation Attorney:
The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.
The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:
July 2012 Disciplinary and Other FINRA Actions
Broker Check: http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/
FINRA Case No. 2010023995101 – In July of 2012, the Financial Industry Regulatory Authority, Inc. (FINRA) issued a release advising that submitted a Letter of Acceptance, Waiver and Consent in which the firm Manhattan Beach Trading Financial Services, Inc. dba MB Trading (CRD #30330, El Segundo, California) was censured and fined $125,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of various findings, including that the firm opened accounts for foreign persons, who after opening the accounts, engaged in a pattern of fraudulent trading through the firm’s direct market access (DMA) trading platform and that without permission, the foreign persons improperly accessed unsuspecting customers’ accounts held at other online broker-dealers, and engaged in a short-sale transaction scheme that guaranteed large profits in their accounts while causing losses in the unsuspecting customers’ outside accounts. The findings also stated that the firm had inadequate written policies and procedures for opening new accounts and did not properly train its new accounts staff to review reports generated by an outside vendor the firm had retained to provide customer identification services. In order to view a copy of the full release, please follow the above referenced links.
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