The Securities and Exchange Commission convinced a federal court to freeze assets and put an advisory firm into receivership.
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The Securities and Exchange Commission convinced a federal court to freeze assets and put an advisory firm into receivership.
The Securities and Exchange Commission ("SEC") obtained a final judgment against a New York-based broker Donald J. Fowler who was charged with fraud for excessively trading customer accounts using a trading scheme that resulted in hefty commissions for the broker but significant losses for his customers.
In 2019, FINRA Enforcement ordered firms and associated persons to pay $70 million in fines, restitution and disgorgement. Of the $70 million, $44 million was in the form of fines, including 9 fines of over $1 million. These 9 “supersized” fines totaled $27.9 million. Additionally, FINRA ordered roughly $24 million in restitution and $2 million in disgorgement in 2019.
Several law firms have redoubled their efforts to solicit investors in the GPB fraud Ponzi scheme. One law firm recently filed a GPB fraud case against Pruco Securities and Kalos Capital for wrongful sale of private placements, including GPB Capital on behalf of an elderly investor who purportedly has suffered investment losses over $250000.
The Better Housing Foundation (“BHF”) has defaulted on roughly $170 million in municipal bounds. Additionally, Lindran Properties, a subsidiary of the BHF, filed for Chapter 11 bankruptcy on January 31, 2020. The Securities and Exchange Commission (“SEC”) since has launched an investigation into BHF. In a subpoena, the SEC sought “records related to the events that preceded current ownership’s involvement in [Better Housing Foundation] and its affiliates.”
A FINRA arbitration panel has ordered Bank of New York Mellon's Pershing to pay more than $5.6 million in damages to a bevy of victims of the Ponzi scheme run by R. Allen Stanford more than a decade ago, and more cases are on the way.
This is the second part of a three-part series.
As discussed in part one of this three-part series, written inquiries made pursuant to FINRA Rule 8210 are a tool used by FINRA Enforcement when investigating registered representatives for potential violations. Rule 8210 requires registered representatives to comply with FINRA’s requests for information and documents.
This is the first in a three-part series.
FINRA Rule 8210 serves as a tool FINRA Enforcement uses to investigate potential violations of securities rules and regulations. When FINRA is investigating a registered representative, it will often send the individual an inquiry letter requesting answers to questions and the production of documents. The registered representative is required by Rule 8210 to comply with FINRA’s requests.
William J. Schnepp has agreed to a two-month suspension form association with any FINRA member firm in any capacity, as well as a deferred fine of $5,000, for violations of FINRA Rule 2010.
Ronald “Ramone” Knight has agreed to be barred from association with any FINRA member firm in any capacity after FINRA found that he falsified expense reports.
WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.
The Securities and Exchange Commission (SEC) is ramping up its enforcement efforts targeting off-channel communications, particularly text messages, among investment advisory firms.
B. Riley Financial Inc. has encountered a setback in filing its audited results within an extended timeframe, adding to existing pressure amid concerns raised by short sellers regarding its association with a former business partner.