Network 1 Financial Securities censured and fined for alleged Regulation BI violations
The firm undertook only limited reviews of reports that potentially identified instances of excessive trading in customer accounts. In instances where excessive trading was potentially identified no steps were taken to investigate further or act on the results of the investigations.
The firm’s chief compliance officer and designated principal responsible for the firm’s response to instances of excessively traded accounts has also been suspended and fined for the supervisory failures.
A restitution payment of $533,587 plus interest has also been ordered along with an undertaking requiring the firm to demonstrate its remediation of the compliance issues identified.
FINRA Rule 2010 FINRA Rule 2111 FINRA Rule 3110 Regulation BI Securities Exchange Act Rule 15l-1
Lebenthal Financial Services censured and fined for alleged consolidated report shortcomings
The firm’s prohibition on the creation and dissemination of consolidated reports was violated by one of its representatives who created approximately 800 consolidated reports and distributed an unknown number of these to customers.
In addition the firm disseminated consolidated reports, which omitted material disclosures, to at least 13 customers and failed to preserve copies of these reports.
Section 17(a) Exchange Act Exchange Act Rule 17a-4 FINRA Rule 2010 FINRA Rule 4511
Securities representative suspended and fined for alleged excessive and unsuitable trading in customer accounts
A restitutionary payment of $17,021 plus interest has been ordered.
FINRA Rule 2010 FINRA Rule 2111
Former securities representative barred for allegedly refusing to provide on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Former products representative barred for allegedly refusing to produce information and documents
FINRA Rule 2010 FINRA Rule 8210
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |