Lincoln Investment’s supervisory failures result in imposters alleged theft of 2 customers’ funds
According to a Letter of Acceptance Waiver and Consent (AWC) signed December 10, The Financial Industry Regulatory Authority (FINRA) has censured and fined Lincoln Investment after alleged supervisory failures resulted in an attempted theft of customers funds.
From July 2016 to December 2017, Lincoln’s supervisory system and written supervisory procedures (WSPs) were not reasonably designed to achieve compliance with the firm’s obligation to monitor transmittals of customer funds. Consequently, in the fall of 2017, impostors allegedly stole or attempted to steal customer funds by requesting transfers from the accounts of two Lincoln customers, according to the AWC.
Lincoln Investment agreed to the sanctions of a censure and a $35,000 fine, and agreed to submit a written certification that: (i) the firm has completed a review of its policies, systems, and procedures regarding the monitoring of transmittals of customer funds; and (ii) as of the date of the certification, the firm’s policies, systems, and procedures are reasonably designed to achieve compliance with applicable securities laws, regulations, and FINRA rules.
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