BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- Wall Street News
- General News
- Donald Trump & Co.
- Regulatory Sanctions
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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
Customer at Risk By Her Broker’s Cover-Ups
by Howard Haykin
PHONE CALLS AND COVER-UPS. Rather than admit to his mistakes and to the fact that he never submitted the customer’s application, the broker engaged in a series of cover-ups.
- In early January ... when the customer asked why funds had not been transferred out of her account to pay for the new V/A contract, the broker said her application was too old and had to be updated. But rather than have the customer re-date or re-sign the form, the broker violated the rules by re-dating the V/A application himself.
- In late January ... when the customer once again asked why funds were still sitting in her brokerage account, the broker lied by saying the V/A account had been established and, as proof, provided the customer with a fake account statement showing December 26 as the V/A issue date - more rule violations.
- On February 14, ... the broker finally submitted the altered V/A application.
When Cambridge Investment Research, the broker’s employer, discovered the broker's conduct, the broker was asked to resign. Some 17 months later, the broker was hit with a $5,000 fine and a 4-month suspension.
THE SQUEAKY WHEEL GETS THE GREASE. While there's some comfort knowing the broker was punished for his errant conduct, it's most reassuring that this customer's wariness and persistence paid off in getting what she wanted. That said, she may have gotten her issues addressed sooner and more completely had she taken these 2 other steps: (i) Contacted firm management to act on her concerns; and, (ii) Ascertained that the value of her investments were not hurt or disadvantaged by the broker's delays in processing her application.
[For further details, click on FINRA Case #2018058496901.]