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- SEC's Opening Remarks to the Elder Justice Coordinating Council
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- 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
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NEWSLETTERS & ALERTS
Pattern of Violations, Starting with Broker’s Use of Personal Email
by Howard Haykin
WHAT WENT WRONG. Between 2013 and 2016 (the "Relevant Period"), the broker sometimes used his personal email account to conduct his securities business, including communications with customers and prospective customers. For example, in or about September 2016, he emailed a prospective customer a blank account form with instructions to fill it out and return.
In December 2016, ProEquities discovered that the broker had been using his personal email account to conduct some of his securities business and it requested that he provide his personal email account password, so that the Firm could review the nature and extent of the securities business the broker had conducted through personal email.
At first, the broker provided his password to the Firm. But then he began deleting emails from his personal account, and later changed his password in an attempt to prevent the Firm from further accessing his emails. Shortly thereafter, the Firm terminated its association with the broker.
FINANCIALISH TAKE AWAY. Frankly, I’m surprised the broker received only a 60-day suspension. While I appreciate the fact that he’s got 17 years‘ experience, holds a Series 24 (General Securities Principal) license, and had a clean disciplinary record, I still expected more from FINRA. Here’s why:
- FINRA typically comes down hard on individuals who lie on firm ACQs (annual compliance questionnaires), as this broker did.
- Here's what he lied about...
- From 2013 to 2016, the broker violated firm policy by using his Yahoo! personal email account to correspond with current and prospective firm customers. And after being caught, he obstructed ProEquities’ attempts to investigate and monitor his personal email activities.
- From 2014 to 2016, the broker violated firm policy by sharing over $200,000 in commissions with 2 other brokers in his office.
- For an undisclosed period, the broker shared office space with an individual not affiliated with ProEquities.
It all adds up to a recent pattern of violations and dishonesty, which prompts me to ask ‘who would want to hire this individual?’
This case was reported in FINRA Disciplinary Actions for January 2019.
For further details, go to ... FINRA Disciplinary Actions Online, and refer to Case #2017052960801 .