A FINRA arbitration panel ordered Raymond James & Associates, Inc. to pay $3.2 million in damages to customers for unauthorized and reckless securities trading. The claimants are 29 clients of former Raymond James’ financial advisor named James Edward Lyons. The arbitration claim was brought against Raymond James and Shreveport, LA […]
The Department of Justice has charged Michael Cohn, former Chief Compliance Officer of GPB Capital Holdings, for stealing information related to an SEC investigation. The U.S. Attorney’s Office for the Eastern District of New York charged Cohn with obstruction of justice, unauthorized computer access, and unauthorized disclosure. Cohn pled not […]
Last month, attorneys general from seven states filed suit against the Securities Exchange Commission challenging Regulation Best Interest, better known as “the Best Interest Rule” or “Reg BI”. The complaint was filed in the Southern District of New York by attorneys general from California, Connecticut, Delaware, Maine, New Mexico, New […]
Earlier this fall, the U.S. Securities and Exchange Commission (“SEC”) brought charges against Brenda Smith, a Philadelphia based investment adviser who allegedly ran a $105 million securities fraud. Smith was charged with four counts of wire fraud and one count of securities fraud. According to the SEC complaint, Smith perpetrated […]
A FINRA arbitration panel ordered Stifel, Nicolaus & Company, Inc. to pay more than $1.5 million in damages for failing to properly supervise a Baltimore based financial advisor. Three customers of Kenneth Blumberg (CRD# 1585520), a financial advisor in Stifel’s Baltimore office, filed claims with FINRA. The customers allege breach […]
The Financial Industry Regulatory Authority (FINRA) has issued a $1.25 million sanction against Citigroup Global Markets (Citigroup) for failing to conduct adequate background checks on personnel. According to FINRA, Citigroup did not adequately conduct background investigations of approximately 10,400 non-registered associated persons between 2010 and 2017. FINRA found that at […]
One of the most dangerous things a broker can do to an investor is selling away. In layman terms, selling away is a private transaction whereby a broker sells a product that is not offered or approved by his or her firm. In other words, the broker is selling an […]
Excessive trading, also called “churning”, happens when a broker buys and sells a high volume of securities for the purpose of generating commissions in a customer’s account. In doing so, they are creating a roundtrip transaction to earn more money. Churning violates federal and state securities law and FINRA rules. […]
According to a CNBC report, Merrill Lynch has paid $40 million to settle a customer complaint against a former Boston area broker named Charles Kenahan. The customer, Robert Levine, was a co-founder of Cabletron Systems. Levine filed a complaint with FINRA alleging that Kenahan made unsuitable investment recommendations and churned […]
Last week, the Securities and Exchange Commission passed a package of regulations aimed at reforming standards for brokers and financial advisors providing investment advice. According to the SEC, the regulations are “designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal […]
