The latest regulatory, disciplinary and criminal actions.
Enforcement
Finra Bars Ex-Wells Broker Who Raised $3.5-Mln For Software Company
Scott W. Reed of Scottsdale, Arizona, allegedly made nearly $200,000 for soliciting and facilitating at least $3.5 million in unapproved investments in a software company.
Finra Suspends Former NJ Broker Who Borrowed from Clients to Pay Debts
Ex-broker Manish H. Shah accepted a 20-month suspension from the brokerage industry and a $15,000 fine for borrowing money from customers to buy another broker’s practice but using the money for personal expenses.
Arbitrator Grants Ex-Merrill Bank Broker’s Expungement, Calls Firing ‘Reckless’
A sole public arbitrator granted the former advisor’s request for expungement and said Merrill defamed the broker by not looking into the allegations behind a customer complaint before issuing the termination.
Wells Fargo Recoups $2.5 Million from New Jersey Duo
Brokers who brought a ‘constructive discharge’ claim against the firm in 2017 have agreed to repay the balance on six promissory notes, according to an arbitration award.
Wells Fargo Claws Back $3 Million from Jailed Ex-Broker
Wells had sought to hold the broker responsible for reimbursements it made to clients after the broker allegedly stole more than $1.1 million.
Finra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
Ohio broker allegedly earned $450,000 from unsuitable short-term trading in Class A mutual fund shares.
SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
Former broker Barry Connell, who served prison time for stealing $5 million from customers, has been barred from the securities industry.
Finra Fines LPL $6.5 Million over Broad Supervisory Failures
The nation’s largest independent broker-dealer failed to maintain proper supervision of record retention, fingerprinting and screening of associated persons, consolidated reports.
Ex-Merrill Broker in Kentucky Sentenced to Eight Years
Former broker pled guilty to stealing roughly $4.2 million over 10 years.
Finra Fines Kestra Over Recruiting Practice Jeopardizing Customer Privacy
Brokers who moved between 2017 and 2019 worked with third-party vendor on populating account-transfer spreadsheets without receiving customer approval.
Finra Sanctions Ex-Oppenheimer Broker over UIT Trades
Fine and suspension against former advisor in Florida follows Oppenheimer’s agreement to pay Finra $4.7 million to settle charge of failing to supervise UIT sales.
