BROWSE BY TOPIC
Stories of Interest
- SEC Charges Additional Defendant in Fraudulent ICO Scheme
- Warren Buffett Simply Blew it on Wells Fargo Stock: Dick Bove (Video)
- Barclays and Deutsche Bank to Lag U.S. Trading Peers
- NY AG Schneiderman Seeks to Close Loophole That Could Let Trump Pardons Block State Charges
- 'Fearless Girl' is Moving to NYSE After Year Staring Down 'Charging Bull'
- What's In Your Wallet - American Express Shares Soar After Earnings Release
- Deutsche Bank's Executive Departures Continue Following Change in CEO
- Reflections of an Economist Commissioner (SEC's Piwowar)
- Billionaire HF Manager and The Fed Chair Runner-Up are Investing in New Cryptocurrency
- Court Finds 2 Brokers Liable for Fraud Involving Mortgage-Backed Securities
- One FINRA: An Organization’s Commitment to Diversity and Inclusion
- 2018 GASB Accounting Support Fee to Fund the Governmental Accounting Standards Board
- Barclays Eyes Move Into Cryptocurrency Trading
- Goldman Breaks From Wall Street Pack with Bond-Trading Boom
- Janney Montgomery Scott CEO Joins FINRA Board of Governors
- SEC Encourages Investors to Do Background Checks on Investor.gov
- The Martin Act: Wall Street Titan Takes Aim at Law That Tripped Him Up
- Bank of America’s Cost-Cutting Drive Pushes Profit to Record
- Larry Fink: Wall Street’s $6 Trillion Man Finally Worth $1Bn
- Activist Investor Wants Barclays Investment Banking Overhaul (Video)
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
A Broker Learns … To Give is Divine, To Receive is Prohibited
by Howard Haykin
Adam Smith agreed to a $10K fine and a 1-year suspension to settle FINRA charges he accepted gifts totaling $105,000 from two customers in contravention of his member firm’s prohibition against accepting such gifts. The findings stated that Smith denied having received any gifts from clients in response to an inquiry from the firm.
BACKGROUND. Adam Smith, a resident of Rogers, AK, entered the securities industry in 2002. He was registered with Merrill Lynch, Pierce, Fenner & Smith, Inc. from April 2002 until May 5, 2016, when his registration was terminated in connection with the matters described herein. Smith had no relevant disciplinary history.
FINRA FINDINGS. Beginning in or about 2006, Smith served as a registered rep for Merrill customers, a married couple. Between October 2010 and January 2011, the couple gave Smith and his wife checks totaling $52,000 to be used for the education of the Smiths' children.
After one of the spouses died, Smith continued to serve as registered rep for the surviving spouse who, between January 2012 and December 2013, gave Smith and his wife additional checks totaling $53,000 - again for their children's education.
Smith's firm prohibited its employees from accepting gifts in the form of checks or cash from customers. Smith compounded the firm violation when he responded to an inquiry by the firm's compliance personnel by denying that he received money from either of customer.
FINANCIALISH TAKE-AWAY. The gifts probably got him the 6-month suspension. The lying doubled he punishment. The one question I have is, “How’d the firm ever find out about the gifts?” But, all seriousness aside, if you’re going to violate firm policies and/or industry rules, be smart about it.
This case was reported in FINRA Disciplinary Actions for May 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016048922301.