Posts tagged ‘Securities Fraud’
Wunderlich Securities, Inc. fined by FINRA
Wunderlich Securities, Inc. (CRD #2543, Memphis, Tennessee) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $50,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to supervise the personal trading of research analysts who maintained discretionary accounts at other firms. The findings stated that the firm’s WSPs mandated compliance department review of personal trading of research analysts but, as a matter of policy, the firm did not require compliance review of analyst accounts over which discretionary trading authority had been granted to a third-party manager or advisor.
As a result of that policy, the firm did not review the personal trading of two research analysts who held discretionary accounts at other firms. The findings also stated that the firm issued equity research reports that failed to comply with NASD Rule 2711(h) disclosure requirements. In some research reports in which it disclosed that it had served as manager or co-manager of a public offering of securities for the subject company in the preceding 12 months, it failed to disclose also that it had received compensation from the company for investment-banking services in connection with the offering. One research report failed to disclose that the firm had served as manager or co-manager of a public offering for the company in the preceding 12 months.
Research reports failed to disclose that the firm was a market maker in the subject company’s securities at the time the report was published. Some research reports were issued with indefinite disclosure regarding financial interests held in the securities of the subject company. Other research reports were issued with disclosures not prominently presented. The findings also included that, in connection with two public appearances by firm research department personnel, the firm failed to disclose its receipt of compensation from the subject company in the preceding 12 months. FINRA found that the firm maintained on its company website a list of all companies its research analysts covered, and for each company listed, the firm provided its current rating and price target for the company’s stock, but failed to include the disclosures mandated by NASD Rule 2210(d) and IM 2210-1(6)(a) with respect to potential conflicts of interest.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Sonenshine & Company LLC fined by FINRA
Sonenshine & Company LLC (CRD #104357, New York, New York) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $15,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that for three years, it failed to establish, maintain and enforce an adequate system of supervisory control policies and procedures in that it failed to test and verify its supervisory controls and procedures. The findings stated that the firm failed to ensure submission to its senior management no less than annually a report detailing the firm’s system of supervisory controls and procedures. The firm failed for three years to complete an adequate annual certification of compliance and supervisory processes.
The findings also stated that the firm failed to provide for independent testing for AML compliance and failed to provide adequate ongoing AML training for appropriate personnel.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with Sonenshine & Company LLC, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
SEC Alerts Investors about Investment Fraud Risks related to Social Media
The SEC recently released an “investor alert” with the goal of helping “investors be better aware of fraudulent investment schemes that may involve social media.” The SEC acknowledges in the alert that social media has become an important tool for the investing public to accumulate information about all facets of investing. Investors are increasingly looking to social media like Twitter, YouTube, LinkedIn and Facebook for information on brokers and brokerage firms and also to do research on individual investments and investment vehicles. The SEC wants it to be known that “While social media can provide many benefits for investors, it also presents opportunities for fraudsters. Social media, and the Internet generally, offer a number of attributes criminals may find attractive.”
According to the SEC, social media provides those inclined to commit fraud the opportunity to “contact many different people at a relatively low cost.” Additionally, the ease at which individuals can create profiles and pages that may appear legitimate may be to their advantage. The alert says, “…that feeling of legitimacy gives criminals a better chance to convince you to send them your money.” Finally, social media provides an opportunity to those wishing to commit fraud with some anonymity which may “make it harder for fraudsters to be held accountable.”
The SEC goes on to give tips for how investors may use the positive aspects of social media for investing, while protecting the investors from fraudulent investments schemes. Like many investor alert’s, the SEC says being an “educated investor” in the best way to protect one’s self. They offer five tips to “avoid fraud online.”
1. “Be Wary of Unsolicited Offers to Invest”
2. “Look out for Common “Red Flags””
3. “Be Thoughtful About Privacy and Security Settings”
4. “Ask Questions and Check Out Everything”
5. Avoid “Common Investment Scams Using Social Media and the Internet”
- “Pump-and-Dumps” and Market Manipulations
- “Fraud Using “Research Opinions,” Online Investment Newsletters, and Spam Blasts”
- “High Yield Investment Programs”
- “Internet-Based Offerings”
You can find the full text of the SEC investor alert about social media at this address: http://investor.gov/news-alerts/investor-alerts/investor-alert-social-media-investing-avoiding-fraud
If you are concerned that you have been the victim of securities fraud and would like to speak to a securities attorney about your potential to recover your losses through securities arbitration please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
Elevation, LLC fined by FINRA
Elevation, LLC, a FINRA registered broker-dealer based in Charlotte, North Carolina, recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $10,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it commenced an options business, engaged in options transactions and designated an individual as its Registered Options Principal (ROP) until his resignation from the firm.
The findings also stated that the firm did not notify FINRA of his resignation but instead continued to engage in options business without registering a new ROP. Additionally, the findings stated that the firm failed to establish, maintain and enforce an adequate supervisory system for its options activities, including written procedures, reasonably designed to achieve compliance with application securities regulations, and to supervise options transactions in which it engaged. The findings also included that the firm failed to comply with multiple requirements of FINRA Rule 2360, the options rule, by failing to comply with its registration and customer agreement requirements.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with Elevation, LLC, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Corby Capital Markets, Inc. fined by FINRA
Corby Capital Markets, Inc., a FINRA registered broker-dealer based in Boston, Massachusetts recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $100,000 and required to certify to FINRA in writing within 30 days of the issuance of the AWC that it currently has in place systems and procedures reasonably designed to achieve compliance with the laws, regulations, and rules concerning MSRB reporting requirements.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to report 31 percent of its municipal securities transactions to the MSRB. The findings stated that the firm mistakenly viewed the transactions as “step outs” and therefore reported the transactions to the National Securities Clearing Corporation’s Real-Time Trade Matching System, but did not report them to the MSRB’s Real-Time Transaction Reporting System (RTRS).
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.