2015 Brings New Highs For SEC In Enforcement Actions And Fines
The SEC focused on a number of new kinds of errant financial behavior in 2015 as the agency filed a record number of enforcement cases and fines against both companies and individuals. This year, the SEC filed 807 enforcement actions and got orders for $4.2 billion in penalties and disgorgements of illicit gains for the […]
Texas Man Convicted Of Securities Fraud
A federal jury on Monday convicted a Rockwall, Texas man of securities fraud arising from an investment scheme he ran, according to U.S. Attorney John Parker of the Northern District of Texas. Mark Lee Cleaton was found guilty on four counts of wire fraud and is facing a maximum penalty of twenty years in prison […]
FINRA Fines Twelve Firms A Combined $6.7M
FINRA ordered twelve firms to pay restitution over $4 million and fines over $2.6 million for failing to apply sales charge discounts to customers’ purchases of Unit Investment Trusts (“UITs”) and relevant supervisory failures. The firms sanctioned include First Allied Securities, Inc. of San Diego, CA; Fifth Third Securities, Inc. of Cincinnati, OH; Securities America, Inc. […]
What Advisers Get Wrong About Variable Annuities
Both advisers and insurers believe that variable annuities with guaranteed benefit riders are the most complicated annuity products. Certain aspects of these annuity contracts can lead to misconceptions among advisers regarding how the products work and among customers regarding what they are purchasing. “A lot of the people selling these products simply don’t fully understand […]
Securities Industry, DOL Fight Over Cost Of Fiduciary Rule
Labor Secretary Thomas Perez backed a proposal to increase investment advice standards for retirement accounts by arguing that studies showing the need for such a rule are more reliable than those funded by the securities industry that question it. In a speech last week, Perez quoted the “conservative estimates” of a White House Council of […]
Financial Adviser Sentenced For Defrauding Disabled Woman
Jodene Beaver has spent the majority of her 56 years dealing with physical and mental impairments. She is able to live on her own with the help of her family who cares for her and work as a grocery-store greeter. Two months after her father died, Beaver placed her trust in Jason Wade Cox, a […]
FINRA Fines Six IBDs For Failing To Discount Large REIT Sales
Voya Financial Advisors Inc., Transamerica Financial Advisors Inc. and four other independent broker-dealers failed to give clients appropriate discounts on large sales of nontraded real estate investment trusts and business development companies. In turn, FINRA fined the six over $500,000 combined. The fines comes as part of FINRA’s crackdown on firms not properly giving their customers […]
Fiat Chrysler Investigated For Alleged Securities Fraud
Fiat Chrysler Automobiles N.V. is being investigated for allegedly violating specific sections of the Securities Exchange Act of 1934 by issuing materially misleading information to the investing public pertaining to the company’s compliance with safety recalls. In July, the National Highway Traffic Safety Administration announced an enforcement action and record $105 million fine imposed on […]
FINRA Fines Santander Securities LLC $6.4 Million For Supervisory Failures
FINRA mandated that Santander Securities LLC pay about $4.3 million in restitution to a number of clients who were solicited to buy Puerto Rican Municipal Bonds. Further, the firm will pay restitution of $121,000 and make offers of rescission to buy back the securities sold to particular customers impacted by the firm’s failure to supervise […]
FINRA Expels Halcyon Cabot Partners And Bars CEO And CCO
FINRA expelled New York-based Halcyon Cabot Partners, Ltd., and barred Chief Executive Officer Michael Morris and Chief Compliance Officer Ronald Heineman from the securities industry, for fraud, sales practice abuses, and widespread supervisory and anti-money laundering failures. FINRA found that Halcyon, Morris and Heineman engaged in a scheme to conceal a kickback of private placement fees. […]