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
Sales Manager Committed Expense Report Fraud
By Howard Haykin
Marc Ravenscroft agreed to be barred from the industry to settle FINRA charges that he submitted expense reports containing business-related credit card charges that had been cancelled and refunded to his credit card.
FINRA FINDINGS. Ravenscroft had 19 years’ experience with 6 firms – the last 9-1/2 years with LPL Financial. From March 2012 through March 2016 (the "Relevant Period"), Ravenscroft charged to his Firm corporate credit card at least $16,299 in travel-related expenses which he later cancelled.
So, while those charges were partially or wholly refunded to his Firm credit card by the vendor, Ravenscroft requested and obtained reimbursement from the Firm for the charges. Yet he never advised the Firm that the charges had been credited back to his corporate credit card and, instead used the reimbursed monies to pay for his personal expenses that he charged to his Firm corporate credit card.
FINANCIALISH TAKE AWAYS. On his LinkedIn page, Ravencroft claims that he served as SVP, SE Division Manager for LPL Financial, and was “responsible for management of Business Development team in Southeast Region for LPL Financial.” Prior to that, he supposedly served as Regional Sales Director for OneAmerica.
Considering those ‘lofty’ sales titles, it's likely that Ravenscroft submitted a large number of expense reports – which would have made it difficult for anyone to detect fraudulent expense items. And, the task of detecting fraud was all the more difficult given that his false expenditures averaged around $4,000 a year - not an enormous sum.
So, how might a firm have combatted Ravencroft's scheme? Perhaps by ... (i) having the firm’s accounts payable department receive all business credit card statements directly from the credit card agency; or, (ii) having firm personnel audit selected line items on credit card statements or expense reports (though the latter alternative seems way too labor-intensive).
This case addressed in this article was reported in FINRA Disciplinary Actions for November 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016049759001.