SunTrust/Truist to pay more than $1 Million for Violations
According to public document on FINRA’s website yesterday, the regulator has censured and fined SunTrust (now known as Truist Securities, CRD no. 6271) $1,250,000 for rules violations in connection with the firm’s trading volume in certain stocks.
According to a Letter of Acceptance Waiver and Consent, from April 2013 through June 2015, certain traders at SunTrust engaged in trading designed to increase the firm’s trading volume in certain stocks, in an effort to attract more investment banking business.
The firm occasionally bought and sold certain stocks with other market participants in quick succession, trading in the open market to increase the firm’s trading volume, according to FINRA. Certain traders at the firm also allegedly overstated their advertised trading volume to media sources that published trade rankings, reportedly representing that SunTrust had traded more stock than it actually had.
According to FINRA, through these actions, SunTrust made it appear that it was more active in the stock of certain issuers that were either current or prospective clients. Further, from April 2013 through October 2017, the firm’s supervisory system was not reasonably designed to achieve compliance with Rule 5210.
Potential Lawsuits to Recover Financial Losses
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