Archive

Broker Denied FINRA Expungement after Settlement – Tightening Rules and the Need for Legal Representation

Michael James Malone, a FINRA arbitrator in Detroit, recently denied an expungement request from broker Kathie Lee Foreman. Foreman was seeking expungement of a customer complaint in connection with “unsuitable” investments allegedly leading to the, also alleged, loss of $20,000. Foreman, formerly of Sigma Financial Corp.; had also…
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AML Regulators Target Capital One’s Check Cashing Businesses

Check cashing businesses are a major focus of anti-money laundering rules and regulations. Investors recently learned that federal and New York prosecutors are currently investigating Capital One Financial Corp.’s anti-money laundering program and “certain check casher clients” from the financial institution’s annual report – offering the perfect opportunity…
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FINRA’s Revised Sanction Guidelines

Last April, FINRA announced that it had revised the sanction guidelines that apply when there has been a violation of a FINRA rule. Professionals in the industry whose activities are regulated by FINRA need to be aware of the scope and impact of these changes. The Sanction Guidelines…
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SEC Loses in Its Own Court – Charges Dismissed in Radiant Systems Insider Trading Case

The SEC is not used to losing a case in-house, but that is precisely what happened on April 18th, when Judge James Grimes dismissed the insider trading allegations against Charles L. Hill of Atlanta. Hill had made a sizable profit by buying shares of Radiant Systems Inc. right…
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FINRA Fines TD Bank Unit over Failure to Review Emails

A unit of TD Bank, a US subsidiary of Canada’s Toronto-Dominion Bank, has agreed to pay a $125,000 fine to resolve allegations that it failed to record the required review of 3.1 million emails. FINRA requires that all securities-related correspondence between registered representatives and the public receive supervisory…
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Between the Forgotten Investor and CEO Pay Ratio Disclosures – Piwowar’s Vision for the SEC

During the “SEC Speaks” Conference 2017, Acting U.S. Securities and Exchange Commission Chair Michael Piwowar amply discussed the plight of the “forgotten investor.” Citing the work of sociologist William Graham Sumner, who spoke of The Forgotten Man, “the victim of the reformer, social speculator, and philanthropist,” Piwowar questioned…
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