BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- 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
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.