The streak of expense-claim abuses that reportedly caused some 200 employees to lose their jobs at Fidelity Investments may be familiar to the many firms that offer partial reimbursement for expenses such as computers and accessories or fitness memberships and equipment.… Continue Reading
The SEC Wednesday charged a chief compliance officer and two broker dealers with failing to file Suspicious Activity Reports after red flags came up for the sale of 12.5 billion shares of penny stocks.… Continue Reading
The SEC alleged Wednesday that two former anti-money laundering compliance officers for a New York broker dealer aided and abetted their firm’s AML violations.
One of the compliance officers settled the SEC charges.… Continue Reading
Instead of completing compliance training modules on their own, three Credit Suisse bankers had their administrative assistants do the work for them.
The admins logged in with their boss’s credentials and completed two modules — “Understanding Money Laundering, Terrorist Financing, Sanctions and Corruption” and “Global Records Management.”… Continue Reading
For nearly five years Citigroup Inc. sent retail customers the wrong research ratings on more than 1,800 stocks, causing many to buy and hold shares they never would have owned.
The Financial Industry Regulatory Authority or FINRA fined Citigroup $5.5 million and ordered it to pay at least $6 million in compensation to retail customers for the ratings errors.… Continue Reading
The Financial Industry Regulatory Authority fined Raymond James $2 million for using a system that didn’t properly monitor or review employee emails.
From late 2007 to September 2017, Raymond James’ email review system was “flawed in significant respects,” FINRA said.… Continue Reading
The Financial Industry Regulatory Authority barred a New York-based broker for churning the account of a blind elderly widow and recommending unsuitable investments.
Hank Mark Werner of Northport, New York was also ordered to pay more than $155,000 in restitution to the widow and penalized $80,000.… Continue Reading
The Financial Industry Regulatory Authority fined J.P. Morgan Securities, LLC $1.25 million for failing to conduct proper background checks on 8,600 new employees.
FINRA — Wall Street’s independent regulator — said the due diligence failures started in 2009 and continued until May this year.… Continue Reading
Wall Street’s independent regulator banned a former Goldman Sachs banker linked to a Malaysia sovereign wealth fund that was allegedly looted, after he said he wouldn’t cooperate with the regulator’s investigation.… Continue Reading
The Financial Industry Regulatory Authority (FINRA) said Wednesday it penalized Morgan Stanley Smith Barney LLC about $13 million for failing to supervise its representatives’ short-term trades of unit investment trusts.
Morgan Stanley will pay a fine of $3.25 million and about $9.78 million in restitution to more than 3,000 affected customers.… Continue Reading
Wall Street’s independent regulator warned that people claiming to be involved in the hiring process for legitimate organizations are using Skype and similar apps to phish for personal information and money.… Continue Reading