Archive

FINRA Fines Wedbush Securities $1.5 Million Over Violations Related to Customer Reserves and Net Capital Requirements

FINRA recently announced monetary sanctions against Wedbush Securities in the amount of. $1.5 million for SEC rule violations and associated compliance failures. According to FINRA, Wedbush violated the SEC Customer Protection Rule, which requires broker-dealers…
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New Arrest in SEC Case Against Celebrity-backed ICO Centra Tech

Celebrity endorsements add an element of trust for investors who are just entering the ICO market. But the strategy did not turn out well for Centra Tech, as a third arrest has just been made…
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SEC Proposes Regulation Best Interest to Protect Investors from Self-Serving Brokers

A new proposed SEC regulation vows to “enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers.” If “Regulation Best Interest” is finally implemented, broker-dealers will be required to “act in the…
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SEC Subpoena? How Cryptocurrency Companies Should Prepare

The SEC is effectively expanding its jurisdiction into the cryptocurrency and ICO market. Dozens of companies, possibly hundreds, are receiving SEC subpoenas, which I advise them to take very seriously. High profile companies, including giants like TechCrunch’s…
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Cryptocurrency and ICO Space Prepare for Increasing SEC Scrutiny

The SEC has repeatedly warned cryptocurrency investors about the market’s vulnerability to large-scale fraud. Likewise, the agency has made it clear that cryptocurrency offerings that function as securities will be treated as such, and thus…
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SEC Suit Targets Fintech Startup Scam

The SEC has filed a complaint accusing Mozido’s founder, Michael Liberty, and four of his associates of defrauding investors out of over $48 million. The mobile payments startup allegedly used funds from investor accounts to…
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Brooklyn Prosecutors Say ICOs are Securities in Alleged Fraud Case

On March 19, 2018, federal prosecutors once again reinforced the notion that cryptocurrencies can be securities, as they upheld their certainty that ICOs offered by Maksim Zaslavskiy through his companies REcoin and Diamond Reserve Club,…
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SEC’s Lawsuit Against Woodbridge´s Robert Shapiro Over a 1.2 Billion Ponzi Scheme Has Many Ramifications

On January 16th, a settlement was reached to create new fiduciary committees to handle a complex transition at the bankrupt Woodbridge firm, following a SEC lawsuit over a billion-dollar Ponzi scheme run by Woodbridge founder…
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FINRA Fined Citigroup $11.5 Million and J.P. Morgan $2.8 Million

FINRA recently sanctioned Citigroup Global Markets Inc. $11.5 million over inaccurate research rating displays. The sanction includes a $5.5 million in fines and $6 million in compensation for wronged retail customers. According to the SRO’s…
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FINRA Issues Warning About Cryptocurrency Stock Scams

Recently, several cryptocurrency scams have come to light: dishonest individuals advertising their newly concocted crypto-coin as the next big thing, with a potential to make millions for investors willing to take the risk. FINRA recently…
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