Tagged with "James Eccleston"

Judge Denies Firms’ Request for Funds from International Investment Group Judgment

Posted on June 9th, 2020 at 3:42 PM
Judge Denies Firms’ Request for Funds from International Investment Group Judgment

In March, a federal judge entered a final judgement in a case brought by the U.S. Securities and Exchange Commission (“SEC”) against International Investment Group LLC (“IIG”). According to the SEC, IIG doctored loan records and inflated the value of defaulted loans. The SEC also alleged that IIG sold $60 million in fake loans to cover up losses in its flagship hedge fund. The judgement ordered IIG to pay $30.9 million in disgorgement and $4.3 million in prejudgment interest, which has since been paid by IIG.

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FINRA Implements New Rule for Unpaid Arbitration Awards

Posted on June 8th, 2020 at 4:16 PM
FINRA Implements New Rule for Unpaid Arbitration Awards

In a Regulatory Notice, the Financial Industry Regulatory Authority (“FINRA”) detailed amendments to its Membership Application Program (“MAP”) rules. The MAP rule amendments are designed to further encourage the timely payment of FINRA arbitration awards.

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SEC Awards Whistleblower Almost $50 Million

Posted on June 5th, 2020 at 4:07 PM
SEC Awards Whistleblower Almost $50 Million

A whistleblower who submitted a tip to the U.S. Securities and Exchange Commission (“SEC”) received a nearly $50 million award.  This award is the largest award ever given to a single individual under the SEC whistleblower program, surpassing the previous record of $39 million awarded in 2018. The SEC also noted that it had now awarded more than $500 million through its whistleblower program.

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Ares Management Settles SEC Claim of Compliance Violations

Posted on May 28th, 2020 at 3:52 PM
Ares Management Settles SEC Claim of Compliance Violations

Ares Management LLC, a private equity firm and registered investment adviser based in Los Angeles, has agreed to settle charges brought by the U.S. Securities and Exchange Commission (“SEC”).  According to the SEC, Ares failed to implement and enforce policies and procedures reasonably designed to prevent the misuse of material nonpublic information.  According to a release by the SEC, the firm will pay $1 million as part of the settlement.

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FINRA Establishes New Rules for Unpaid Arbitration Awards

Posted on May 27th, 2020 at 3:59 PM
FINRA Establishes New Rules for Unpaid Arbitration Awards

The Financial Industry Regulatory Authority (“FINRA”) announced new rules aimed at member firms and registered representatives who have unpaid FINRA arbitration awards.  Pursuant to the new rules, FINRA may deny new membership to a firm or registered representative if that rep or firm has pending arbitration claims against them in which there is a concern about payment of a potential award.  Additionally, the new rule will require firms with substantial unpaid arbitration awards to submit an application for continued FINRA membership and also subject these firms to heightened scrutiny by FINRA if those firms try to shift assets, management or owners to another firm.

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FINRA Suspends Former Merrill Lynch Broker for 21 Months

Posted on May 22nd, 2020 at 3:04 PM
FINRA Suspends Former Merrill Lynch Broker for 21 Months

Former Merrill Lynch broker, Christopher M. Roumayeh, agreed to a $15,000 fine and a 21-month suspension from association with any FINRA member firm in all capacities.  According to FINRA Enforcement, Roumayeh engaged in outside business activities without providing prior written notice to his firm.

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FINRA Clarifies Effects of SEC’s Regulation Best Interest on FINRA Rules

Posted on May 21st, 2020 at 3:46 PM
FINRA Clarifies Effects of SEC’s Regulation Best Interest on FINRA Rules

The upcoming implementation of Regulation Best Interest (“Reg B-I”) has broker-dealers wondering how Reg B-I fits in with FINRA’s suitability rule. Robert Colby, FINRA’s chief legal officer, recently provided guidance on the effect Reg B-I will have on FINRA’s rules.

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Judge Relies on COVID Pandemic to Deny Motion for TRO Filed Against Brokers

Posted on May 20th, 2020 at 3:11 PM
Judge Relies on COVID Pandemic to Deny Motion for TRO Filed Against Brokers

A federal court judge in Florida denied Regions Bank’s motion to reinstate a temporary restraining order (“TRO”) filed against the bank’s former financial advisors, Michael Montalvo and Mauricio R. Cardenas.  Regions Bank sought a TRO in an effort to restrain Montalvo and Cardenas from soliciting former clients serviced at Regions Bank.

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SEC Charges Three with Fraud Related to Oil Drilling Promises

Posted on May 19th, 2020 at 3:23 PM
SEC Charges Three with Fraud Related to Oil Drilling Promises

The U.S. Securities and Exchange Commission (“SEC”) filed a Complaint against Paul R. Montgomery, Jr., Michael D. Fisher and James H. Willingham, Jr. (collectively “Defendants”), alleging that Defendants committed fraud in connection with the sale of joint venture interests in two oil and gas projects.  According to the SEC, Defendants told investors that new oil and gas wells would be drilled and existing wells would be reworked as part of Navarro Phase I project and Seguin Development Phase II project. The SEC alleged that Defendants promised investors 32% returns on their investment.

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Wells Fargo Broker Terminated for Improper Cash Withdrawals

Posted on May 19th, 2020 at 3:09 PM
Wells Fargo Broker Terminated for Improper Cash Withdrawals

Steven Hour Heng was terminated from Wells Fargo Advisors following what Wells Fargo determined to be improper cash withdrawals from his personal bank account. According to the Form U5 filed by Wells Fargo, in December 2019, Heng made six cash withdrawals in an amount that was designed to avoid currency transaction reporting requirements. Under the Bank Secrecy Act, banks are required to report any transactions above $10,000. Heng is disputing Wells Fargo’s characterization of the situation.

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The work that you and your team have performed on my behalf is exemplary.

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LATEST NEWS AND ARTICLES

April 23, 2024
Surge Predicted in Regulation Best Interest Cases

According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.

April 22, 2024
FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.

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WealthFeed Raises Funds for AI-Driven Lead Generation Tool

WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.