Failure to Supervise - Page 46 of 46 - Law Offices of Robert Wayne Pearce

459 search results found for “Failure to Supervise”

Oct 2, 2015

Raymond James Sunny Isles Beach, Florida Associate Suspended

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) submitted a complaint against Mayumy Stevenson of Sunny Isles Beach, Florida for allegedly falsifying an email causing her firm to maintain inaccurate books and records. Stevenson entered the securities industry in September 2012. On February 13, 2013, Stevenson’s employment was transferred to Raymond James & Associates (Raymond James) who had acquired her previous firm. Stevenson worked as a sales assistant and remained with the firm until her termination on October 8, 2014.

Aug 17, 2015

Morgan Stanley Fined $675,000 for Failing to Address Short Positions in Tax-Exempt Municipal Bonds

Morgan Stanley & Co. and Morgan Stanley Smith Barney LLC of New York submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise and implement adequate written procedures to comply with Municipal Securities Rulemaking Board (MSRB) rules relating to short positions in tax-exempt municipal bonds.

May 4, 2015

Liberty Partners Stockbroker Barred by FINRA for the Fraud of an Elderly Client

Ronald Paul Rafaloff, a former registered representative with the Bakersfield, California branch of Liberty Partners Financial Specialists, LLC (Liberty Partners) submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he converted $168,000 of an elderly customer’s investment funds for his personal use and benefit. According to FINRA, Ronald Rafaloff’s only client, a 74 year old retiree, invested $405,000 of her retirement money into three speculative business entities. The business entities, for which Mr. Rafaloff claimed to provide consulting services, were actually founded and controlled by Mr. Rafaloff. In order to persuade his elderly client to invest, Mr. Rafaloff allegedly promised annual returns of 30-40% and a repayment of her principal in three years. He also allegedly provided the elderly investor with written guarantees against losses, agreeing to personally make payments to the investor if the business entities should default. FINRA found that none of the companies held sufficient funds to cover the return of principal or the high rates of returns promised by Mr. Rafaloff.

Jan 30, 2015

Girard Securities Subject of Massive SEC Audit Focusing on Branch Office Supervision

Girard Securities, Inc. (Girard Securities) is the subject of a massive audit by the U.S. Securities and Exchange Commission (SEC). The primary focus of the audit will be on the supervision of the registered representatives and financial advisors in its branch offices. With over 230 producing registered reps and financial advisors, the big question is, How will Girard Securities fare under the microscope of the SEC? Girard Securities has been acquired by RCS Capital Corp., an acquisition awaiting the approval of the Financial Industry Regulatory Authority (FINRA). Approval is expected at the end of February, according to a memo from Girard Securities’ Chairperson and Chief Executive, Susie Woltman Tietjen. RCS Capital Corp.’s purchase of Girard Securities, plus its August 2014 purchase of VSR Financial, with its 264 registered representatives and financial advisors, means that RCS Capital Corp. will have nearly 9,700 registered reps and advisors! It appears that the SEC is right on target with its audit priority of branch office supervision!

Jan 29, 2015

Oppenheimer Admits Guilt to Penny Stock Pump and Dump Schemes

As part of concurrent settlements with the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN), Oppenheimer & Co. Inc. (Oppenheimer) has admitted it is guilty and agreed to pay $20 million for engaging in unregistered sales of penny stocks. According to the SEC Order, one Oppenheimer Financial Advisor and his immediate supervisor, an Oppenheimer Branch Office Manager, engaged in the sales of 2.5 billion shares of unregistered penny stocks for an investor customer. Those trades generated $12 million, of which Oppenheimer was paid $588,400 in commissions. The SEC Order states further that Oppenheimer personnel was aware of red flags indicative of illegal unregistered penny stock trades and failed to property follow up on those warning signs. Further, Oppenheimer failed to supervise its employees by failing to establish procedures to ensure its employees comply with Section 5 of the Securities Act.

Jan 13, 2015

Former LPL Financial and Financial Network Stockbroker Robert Mangold Suspended by FINRA

Robert Charles Mangold, a former registered representative with Financial Network Investment Corporation (Financial Network) and LPL Financial LLC (LPL) submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) sanction and findings that he solicited and received $56,000 in loans from two customers.

Oct 30, 2014

Merrill Lynch Fined $6 Million for Short Selling and Supervisory Violations

The Financial Industry Regulatory Authority (FINRA) has fined Merrill Lynch $6 million for Regulation SHO (Reg SHO) violations and failures to supervise. According to FINRA’s announcement on October 27, 2014, it censured and fined Merrill Lynch Professional Clearing Corp. (Merrill Lynch PRO) $3.5 million for violating Reg SHO, which is an SEC rule governing short sales and aimed at preventing abusive naked short selling. Additionally, FINRA also censured and fined Merrill Lynch, Pierce, Fenner & Smith Inc. (Merrill Lynch) $2.5 million for inadequate supervisory practices. According to FINRA, from September 2008 through July 2012, Merrill Lynch PRO failed to take action to close out certain fail-to-deliver positions, as required under Reg SHO. Further, Merrill Lynch PRO did not have appropriate systems and procedures in place to address the Reg SHO close-out requirements during most of the time period.

Oct 17, 2014

Arhonda T’Lene Guinn Permanently Barred by FINRA for Converting Customer Funds

Arhonda T’Lene Guinn, a former registered representative with Vero Beach, Florida-based Stifel, Nicolaus & Company, Inc. (Stifel Nicolaus) submitted a Letter of Acceptance, Waiver and Consent in which she consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that she converted funds from a customer’s account for personal use. According to FINRA, Arhonda Guinn transferred $12,100 from a customer’s account to a bank account belonging to her landlord. The Stifel Nicolaus customer had no knowledge of and did not consent to the transfer of funds. In order to complete the transfer, Arhonda Guinn allegedly falsified her customer’s previously signed Letter of Authorization. FINRA found that Arhonda Guinn used the customer’s funds to pay six months of rent. Consequently, Arhonda Guinn, of Vero Beach, Florida, was barred from association with any FINRA member in any capacity.

Apr 29, 2014

Berthel Fisher Fined by FINRA for Lax Supervision of REIT and ETF Sales

Marion, Iowa-based Berthel Fisher & Company Financial Services, Inc. (Berthel Fisher) and its affiliate, Securities Management Research, Inc. consented to, but did not admit to or deny, the described sanctions and to the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that it failed to supervise the sale of non-traded real estate investment trusts (REITs) and exchange-traded funds (ETFs) and also made unsuitable recommendations relating to alternative investments.

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459 search results found for “Failure to Supervise”