Investment banking representative charged with allegedly converting funds and failing to appear for on-the-record testimony
The representative charged personal, non-business expenses to his corporate credit cart without authorization from his employer, and submitted false expense reports identifying these as legitimate business expenses in order to secure payment of them by the employer.
This is a complaint and not an AWC.
FINRA Rule 2010
FINRA Rule 8210
Former securities representative suspended for allegedly failing to disclose a felony on Form U4
Three judgments totaling over €700,000 were issued against the representative by a Greek court. The judgments were never satisfied and the representative was charged with one count of fraud involving investments, a felony charge, in a Greek criminal court.
FINRA By-laws Article V
FINRA Rule 1122
FINRA Rule 2010
Susquehanna Financial Group censured and fined for alleged inaccurate TRACE reporting
The firm had failed to include the required NR indicator in TRACE reports for approximately 74,000 transactions.
It also failed to establish, maintain and enforce a supervisory system reasonably designed to supervise the accuracy of its TRACE reporting.
FINRA Rule 2010
FINRA Rule 3110
FINRA Rule 6730
Former securities representative barred for allegedly refusing to provide information and documents
FINRA Rule 2010
FINRA Rule 8210
Former products representative barred for allegedly refusing to provide documents and information
FINRA Rule 2010
FINRA Rule 8210
Rialto Markets censured and fined for allegedly failing to put in place adequate measures to safeguard customer records and information
FINRA had advised the firm to establish written supervisory procedures and systems to address and mitigate potential cybersecurity risks. But the firm failed to address these concerns and implement data loss prevention controls such as:
- multi-factor authentication for all email accounts;
- email access and other audit logs;
- alerts for suspicious activities such as anonymous IP address use; or
- email forwarding rules.
In November 2021, an “unauthorized user gained access to a firm employee’s business email account and had unrestricted access to the nonpublic personal information of over 4,400 firm customers.”
This user also used their access to facilitate the fraudulent transfer of over $1m from the firm’s escrow agent to their bank account. Only some of the funds were recovered, but the party affected was made whole by the firm.
FINRA Rule 2010
FINRA Rule 3110
SEC Regulation S-P Rule 30
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
