Search Results for: FINRA

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On Monday, FINRA charged a New York broker-dealer, as well as a number of current and past registered representatives, with churning customer accounts and other illicit actions the resulted in significant losses to retirees and other investors. According to FINRA enforcement attorneys, Newport Coast Securities Inc. and five of its current and past brokers knowingly […]

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The SEC approved a new FINRA rule that will make it hard for brokers to delete customer complaints from their records in arbitration cases. Rule 2081 will prevent brokers from making settlements with customers requiring the claimant to accept expungement of the case from the broker’s public record. The goal of the new rule is […]

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A federal judge in New York ruled this week that Citigroup would not have to face FINRA arbitration regarding claims that its stock dropped precipitously after it hid securitized-loan losses because an arbitration would violate an already existing $590 million dollar settlement over the same claims. An arbitration had been begun by Gary Burgess and […]

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Last week, FINRA barred Kenneth Ronald Allen from the securities industry. Allen, who was once an equity trader at First New York Securities L.L.C., was found to be trading Japanese securities because of non-publicized, material information acquired from a corporate insider. According to an investigation by FINRA, the Office of Fraud Detection and Market Intelligence, […]

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Last week, the SEC issued an order requiring particular national security exchanges and FINRA to jointly develop and file with the SEC a national market system plan to install a 12-month pilot program directed at expanding minimum quoting and trading increments (i.e., tick sizes) for particular small capitalization stocks. The pilot program will target stocks […]

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FINRA fined Goldman Sachs Execution & Clearing, L.P. $800,000 for failing to have reasonably designed written policies and procedures established to stop trade-throughs of protected quotations in NMS stocks from November 2008 to August 2011 in connection with trading in its proprietary alternative trading system, SIGMA-X. As required by the Order Protection Rule, trading centers […]

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A FINRA hearing panel expelled Success Trade Securities, Inc., which is based in Washington, D.C., from membership and barred Fuad Ahmed, the firm’s CEO and President, for the fraudulent sale of promissory notes and for creating a Ponzi scheme. The firm and Ahmed are also jointly and severally ordered to pay about $13.7 million in […]

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FINRA has fined Merrill Lynch, Pierce, Fenner & Smith, Inc. $8 million for failing to waive mutual fund sales charges for certain charities and retirement accounts. FINRA further ordered $24.4 million in restitution for affected customers on top of the $64.8 million that Merrill Lynch has already repaid to disadvantaged investors. There are many classes […]

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FINRA permanently barred Stuart Siegel, a Florida broker who worked for Morgan Stanley and Oppenheimer & Co. Inc., from the securities industry after he used money from a foundation he headed to fund personal expenses. Siegel, who most recently worked at Oppenheimer & Co. Inc. in Sarasota, Florida, neither admitted nor denied FINRA’s allegations but […]

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FINRA announced today that is has fined Barclays Capital Inc., Goldman, Sachs & Co., and Merrill Lynch, Pierce, Fenner & Smith, Inc. $1 million each for failing to provide complete and accurate information about trades performed by the firms and their customers, called “blue sheet data,” to FINRA, the SEC, and other regulators. Federal securities […]