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FINRA Lawyer Blog

Dishonest Trader Must Disclose Commodity Law Violations in Public Communications

Dishonest Trader Must Disclose Commodity Law Violations in Public Communications

September 20, 2017

Once in a while, regulators and courts take actions that have no precedent, but which may influence justice over time. That is the case of a recent ruling from a Florida federal judge, who ordered a defendant to disclose that he had “violated commodity laws” whenever he writes or speaks...


FINRA CEO Cook Grilled by Congress on FINRA’s Financial Conduct

FINRA CEO Cook Grilled by Congress on FINRA’s Financial Conduct

September 18, 2017

During a recent Financial Services Subcommittee oversight hearing, both Democrat and Republican lawmakers raised concerns before FINRA CEO Robert Cook. Some of the issues discussed were the Regulatory Authority’s standing as a private entity and its handling of fine proceeds, which hit a...


Ironbridge Global Partners and a Subsidiary to Pay $4.4 Million Settlement over Microcap Finance Practices

Ironbridge Global Partners and a Subsidiary to Pay $4.4 Million Settlement over Microcap Finance Practices

September 6, 2017

Ironridge Global Partners LLC has agreed to pay $4.4 million in disgorgement to settle claims that it incurred violations of the Exchange Act when its subsidiary Ironridge Global IV distributed billions of microcap shares without being a registered broker. 
According to the SEC order,...


FINRA Fine Stats 2016 vs. 2017 and Enforcement Trends

FINRA Fine Stats 2016 vs. 2017 and Enforcement Trends

August 30, 2017

Over the course of 2016, FINRA expelled 24 firms from membership and fined offenders for a total of $176 million. The largest fine amounted to $25 million, paid by MetLife Securities over negligent misrepresentations and omissions in connection with variable annuity replacements.
A total of...


FINRA Vows to Protect Investors from High-Risk Brokers

FINRA Vows to Protect Investors from High-Risk Brokers

August 29, 2017

In a speech delivered at Georgetown University, FINRA CEO Robert Cook expressed the Regulatory Authority’s intent on helping brokerages identify and supervise brokers with a history of disciplinary action.
From now on, FINRA is going to look very closely at how firms hire and supervise...


SEC Seeks Injunction in Case Against Avalon FA Ltd. Over Illegal Market Manipulation Known as Layering

SEC Seeks Injunction in Case Against Avalon FA Ltd. Over Illegal Market Manipulation Known as Layering

August 24, 2017

The SEC recently asked a federal judge to freeze $5.4 million of Avalon FA Ltd.’s funds, on account of its practice of “layering.” A Seychelles investment firm run out of Ukraine, Avalon allegedly engaged in illegal market manipulation.
Layering, in the SEC’s words is,...


Raiding Cases in the Securities Industry – Navigating Claims, Damages & the Rest

Raiding Cases in the Securities Industry – Navigating Claims, Damages & the Rest

August 22, 2017

Raiding, hiring groups of brokers from a competitor, happens frequently in the securities industry giving rise to complex disputes and damage claims. Whether your firm is the victim or the accused raiding entity, you will need to understand these basics:
What is raiding in the securities...


$4.8M in FINRA Fines for 4 Firms on Supervisory Gap & Deutsche Bank $12.5M on Failed Supervision of Internal Comms

$4.8M in FINRA Fines for 4 Firms on Supervisory Gap & Deutsche Bank $12.5M on Failed Supervision of Internal Comms

August 16, 2017

Last month, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC and Interactive Brokers LLC agreed to pay a collective $4.8 million to end FINRA´s probe over inadequate risk controls. 
According to FINRA´s allegations, the financial...


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