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- SEC Formerly Bars Martin Shkreli from Industry
- HF Billionaire Steve Cohen Buying Into Fintech Start-Ups
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- Richard Jenrette, Co-Founder of DLJ Investment Bank, Dies at 89
- Goldman Sachs Makes First Hire in Cryptocurrency Markets Unit
- Special FINRA Election to Fill Large Firm Governor Vacancy
- Chicago-Based Investment Adviser Sentenced to 151 Months in Prison - SEC
- Dun & Bradstreet Hit With FCPA Violations - SEC
- 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)
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NEWSLETTERS & ALERTS
Employee Caught in a Check-Kiting Scheme
by Howard Haykin
Brian Scarpellini agreed to pay a $5K fine and to serve a 2-year suspension to settle FINRA charges that he engaged in a check-kiting scheme.
BACKGROUND. Scarpellini, a resident of Plainsboro, NJ, entered the securities industry in April 2014 as a Non-Registered Fingerprint associated person. In March 2015, he joined Merrill Lynch and remained with that firm until 10/2/15, when he was U5’d. Currently serving a 2-year suspension, he’s no longer associated with any member firm.
FINRA FINDINGS. In August 2015, Scarpellini wrote 3 checks from his Wells Fargo personal checking account, payable to himself, in the amounts of $542, $250, and $375 (totaling $1,167). At the time he wrote these 3 checks, Scarpellini knew he didn’t have funds in his Wells Fargo checking account to cover those checks.
Scarpellini deposited those checks into his personal accounts at Bank of America shortly after writing them, and he used the funds for a variety of personal expenses – including auto insurance and ATM withdrawals. After the checks were returned to Wells Fargo for insufficient funds, Scarpellini’s Bank of America accounts were overdrawn by $1,158. To date, he has not repaid Bank of America.
FINANCIALISH TAKE AWAYS. Scarpellini apparently was a young, inexperienced, short on education or common sense, and SEEMINGLY ACTING ON A DEATH WISH. How else can one explain his actions while working for financial institution?
Perhaps a case like this will serve as a reminder to each firm that all of its associated persons - including non-registered personnel - need reinforcement when it comes to cultivating a firm-wide 'culture of compliance'.
This case was reported in FINRA Disciplinary Actions for October 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016048882501.