FINRA December 2015 Disciplinary Actions: Part I
Brookstone Securities, Inc. (Lakeland, FL) was censured, fined $1,000,000 and required to pay, jointly and severally with Christopher Dean Kline (Baraboo, Wisconsin) and Antony Lee Turbeville (Lakeland, FL) $1,620,100 plus prejudgment interest in restitution to their respective customers. Kline and Turbeville were barred from association with any FINRA member in any capacity. David William Locy (Overland […]
Broker-Dealer Settles Variable Annuity Case for $475k
Comprehensive Asset Management and Servicing Inc. (“CAMS”) has agreed to pay $475,000 to settle claims that the firm failed to reasonably supervise representatives’ sales of variable annuities, among other complaints. From February 2008 and 2012 the New Jersey broker-dealer “failed to establish, maintain and enforce a supervisory system and procedures reasonably designed to supervise variable […]
FINRA Charges Cantone Research Inc.’s President With Fraud
FINRA filed a complaint against Cantone Research Inc. (“CRI”) of Tinton Falls, New Jersey and its President, Anthony J. Cantone, charging fraud in connection with the sales and subsequent extensions of more than $8 million of certificates of participation (“COP”) in five promissory notes. The complaint alleges that four of the five pertinent promissory notes […]
History Of Investors Capital Corporation’s Malfeasance
Investors Capital Corporation, a dually-registered independent Broker/Dealer and Investment Advisory firm, has a long history of malfeasance. In the summer of 2014, Patricia S. Miller, a former financial adviser with ICC, was arrested for orchestrating a massive Ponzi scheme that cost her clients millions in savings. Through her scheme, she obtained $4.1 million from over […]
FINRA Wants ‘Significant Fine’ From MetLife For Variable Annuity Sales
MetLife Inc., the biggest life insurer in the country, said that FINRA will seek a “significant fine” from the company’s broker-dealer unit as part of an investigation into potential violations relating to variable annuities. MetLife stated that it is cooperating with the investigation. The examination centers on possible violations “regarding alleged misrepresentations, suitability, and supervision […]
FINRA Interested In Disciplining, Not Punishing
FINRA emphasized that the regulatory authority’s first goal is the “blocking and tackling” of enforcing its rules, not collecting massive financial penalties, stated Russell Ryan, FINRA Senior Vice President and Deputy Chief of Enforcement, at the Securities Docket Securities Enforcement Forum in Washington. FINRA does levy some hefty fines every once in a while, but […]
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. […]
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 […]
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. […]