This last post, in the series of ever changing FINRA enforcement horizon, contains a summary of enforcement actions that the average investor would apt to be exposed to. However, please keep in mind that this list is not exhaustive. Individuals are always trying to come up with new ways to…
This is a continuation of the discussion concerning both the typical and unusual types of FINRA enforcement actions that regularly appear on the horizon. 1. Willful Failure to Disclose Material Information on a Form U4: FINRA’s NAC issued a decision in which it found that a registered representative willfully failed…
Let’s see, if you can guess, how many different types of FINRA enforcements actions typically arise during a quarterly reporting period such as the fourth quarter of 2011. In reviewing the below described summaries, the reader will be amazed as to the stupidity underlying some actions, the negligence and/or fraud…
December, 2011: Technology at its finest? Investors beware! Now investors have something else to worry about. During one of his deposition sessions last week, Ponzi fraudsters Scott Rothstein testified how he created a fake TD Bank website on his law firm computer after investors he was swindling pressed him for…
A alleged story of the greed of a few causing the suffering of many. The Securities and Exchange Commission recently charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved…
In our next installment of it would be funny if it were not true, the SEC recently has had to sue SIPC to attempt to force SIPC to begin the liquidation of Stanford Group Company. Recently, the Securities and Exchange Commission filed an application with the federal district court in the District…
October, 2011: It would be funny if it were not true. The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the brokerage industry. The Securities and Exchange Commission (SEC) is responsible for overseeing FINRA. The SEC recently ordered FINRA to hire an independent consultant and undertake other remedial measures to improve its policies,…
01/25/11 The FBI issued a release today concerning another “to good to be true” fraud that took place under the sunny skies of southern Florida-specifically, those of Palm Beach County-more than two dozen conspirators spent the past four years stealing away some $10 million from 10 banks in the area…
As reported in an earlier Post, Missouri’s Secretary of State recently announced that a New York stock broker could face thousands of dollars in fines after cold-calling a Missourian to solicit investments. Since that time, the department has issued a cease and desist order relative to the matter. To recap,…
It turns out that Cynthia Murphy, one of the 11 people accused of being members of a “deep cover” spy ring for Russia, is a certified financial planner – and a member of the New York chapter of the Financial Planning Association. Ms. Murphy, 35, lived in Montclair, N.J., and…