BROWSE BY TOPIC
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
Expense Reports: 2 Little Piggies at Piper Jaffray
by Howard Haykin
Two brokers with Piper Jaffray – no doubt BFF’s – concurrently agreed to settle FINRA charges that they each had submitted and collected on falsified expense reports – conduct that would violate FINRA Rule 2010.
Both were U5’d (in September 2016) after the firm identified "a pattern of non-compliance … as it relates to classification of certain expenses as business expenses and accurately and completely identifying attendees at and venues of business-related entertainment."
BROKER ONE: $5K FINE AND 9-MONTH SUSPENSION. From January 2014 to September 2016, this broker submitted 16 business expense reimbursement requests (“expense reports”) totaling $5,300 that were based on inaccurate information. Broker One used his Firm-issued corporate credit card to charge several meals or events with his coworkers and, even though no clients were present, he characterized the expenses as meals or events with clients. [FINRA AWC #2016051449201]
BROKER TWO: $5K FINE AND 1-YEAR SUSPENSION. During the same Relevant Period (January 2014 to September 2016), this broker submitted 23 expense reports totaling $16,000 that were based on inaccurate information. Broker Two also used his Firm-issued corporate credit card for several meals or events with coworkers. And, even though no clients were present, he too characterized the expenses as meals or events with clients. [FINRA Case #2016051449001]
PARALLEL LIVES AND CAREERS. It’s not surprising that these 2 brokers allegedly committed similar violations,were U5'd at the same time, and agreed to settle at the same time. A quick review of their backgrounds would indicate that they live parallel personal and professional lives.
- They reside in neighboring communities in Ohio – Broker One in Fairview Park, Broker Two in Westlake.
- Both joined Piper Jaffray in March 2012, and both started to ‘fudge’ their expense reports in January 2014.
- They have similar financial services careers –Broker One had 16 years’ experience, while Broker Two had 15 years.
- Both worked at Fifth Third Securities and NatCity Investments prior to joining Piper Jaffray.
- Finally, since being U5’d in September 2016, neither has been associated with another broker-dealer.
- One difference, though, is that Broker Two got 3 more months of suspension – apparently in deference to the additional $10,000 in falsified expenses that he submitted in the 7 extra expense reports.
These cases were reported in FINRA Disciplinary Actions for November 2018.
For details on either case, go to ... FINRA Disciplinary Actions Online, and refer to the Respective Case Number.