Torrey Pines Securities (San Diego, CA) agreed to a $17.5K fine, and one of its Registered Principals was suspended 10 days, to settle FINRA charges over their alleged mishandling of a branch principal.  [C-I Note:  Must have been a big producer.]

    Principal Nicolette Irisa Denney (Temecula, CA), acting on the firm’s behalf, allegedly failed to ensure that a firm principal completed his annual certification as the firm’s procedure required, and did not follow up on the principal’s failure to provide information re: both his outside business activities and accounts for which he served as a custodian or trustee. 

Ms. Denney also allegedly conducted a branch office inspection in a manner that "did not comport with the firm’s written procedures and did not reasonably review the activities of that office."

Ms. Denney allegedly didn't review the transmittal of funds between the principal’s customers and a 3rd party, as the firm required.   [C-I Note:  it's presumably the same principal, above, who had not completed an annual certification.]    Its further alleged she failed to obtain details re: the principal’s outside business activities.

    Torrey Pines Securities allegedly failed to reasonably supervise that principal by failing to:  (i) inquire into “red flags” which indicated his possible misconduct; (ii) follow up on his O/S business activities, as well as excessive absences;  (iii) timely investigate allegations that he was participating in private placements away from the firm;  (iv) take any steps to place the principal on heightened supervision, after ascertaining his selling away activities. 

Firm's WSP's were deemed not reasonably designed to ensure principal review of wires from customers to 3rd parties - which contributed to it not being aware that the principal’s customers were transferring large sums to a 3rd party and that he was executing Letters of Authorization (LOAs) on behalf of multiple customers.   (FINRA Case #2007011125103)

For details on this and other cases, go to:   [FINRA December Report of Disciplinary Actions]