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
Veteran Broker Chose to ‘Fall on His Sword’ in Dispute Over Customer Loan
by Howard Haykin
Prior to FINRA's sanction in April 2019 …
- In August 2018, LPL Financial discharged this individual due to "[c]oncerns over [his] advisory fee structure."
- In October, LPL filed an amended Form U5, reporting that it had initiated an internal review "to determine if [the broker] received loans from his client(s) while associated with the Firm." [This amended U5 filing prompted FINRA's investigation.]
- In November 2018, the broker paid $210,000 to settle a customer dispute over the loans; customers had requested damages of $175,000.
What’s unfortunate about this case is that …
- In the 1980s and 1990s, this individual was a model broker, obtaining 8 securities licenses - including 4 principal licenses (Series 8, 53, 27, 28).
- In 1989, this broker, now 63, committed his first regulatory violation - involving prices of muni securities sold to customers. The case was settled for $3K.
- Over the next 29 years, this broker had a spotless disciplinary record.
FINANCIALISH TAKE AWAYS. We have no way of knowing the “whys and wherefores” of this case. Yet, I’d like to think, perhaps naively, that this broker had a viable option or opportunity to prolong his brokerage career. Unfortunately, I’m inclined to believe that this broker held little, if any, hope that he could hook up with another broker-dealer.
This case was reported in FINRA Disciplinary Actions for June 2019.
For further details, click on... FINRA AWC #2018060282201.