The latest regulatory, disciplinary and criminal actions.
Enforcement
Merrill, Raymond James to Pay $12 Million for 529 Plan Sales Violations
Firms settle charges from the Financial Industry Regulatory Authority that they sold more expensive classes of education savings plan investments when others were available.
J.P. Morgan Seeks TRO Against Florida Broker Who Joined UBS
J.P. Morgan filed to block a bank-based broker in Florida who left three weeks ago from contacting clients about joining her at UBS Wealth Management USA.
Massachusetts Fines Morgan Stanley for Broker’s Excessive Trading
State imposes $200,000 penalty and orders $182,500 in restitution to clients for wirehouse’s failure to supervise a now-barred broker in Boston.
Judge Halts Fidelity Suit Against Fleeing Broker Who Claimed Retaliation
California advisor who joined an RIA claimed Fidelity filed a client-contact lawsuit against her and her new firm in retaliation for her complaint about a manager and the work environment.
Ex-LPL Broker Suspended over Undisclosed Nutritional Supplements Business
Lousianna broker violated industry and firm rules by not reporting his work for and ownership stake in a nutritional supplements company for four years, according to a letter of settlement.
Morgan Stanley and Jones Brokers Who Joined Wells Agree to TROs
Florida team that managed about $500 million at former firm stipulate they will not solicit their former customers for a year or until a Finra arbitration claim is resolved.
JPMorgan Sues Bank-Based Broker Who Joined UBS
Florida advisor from Chase Bank’s in-branch wealth management group allegedly moved at least $13 million by improperly soliciting former clients.
Hedge Fund Started in College Dorm Room Accused of Fraud by SEC
Samuel Barnett, 30, founded SBB Research almost a decade ago in his dorm room, transforming a college side gig into a hedge fund that managed more than $400 million.
SEC Orders 17 Firms to Pay $11 Million in Crackdown on 12b-1 Fee Disclosures
The Commission settled with 17 firms, including 16 who participated in its self-reporting initiative, over allegations they failed to failed to properly disclose conflicts related to receipt of 12b-1 ‘distribution’ fees from fund companies.
Morgan Stanley Pursues Florida Duo Who Jumped to Wells Fargo
The firm claims that two brokers managing $500 million in assets had solicited former clients and took customer information in violation of employment agreements.
Finra Teaches Another Lesson: Don’t Delegate Test-Taking
An Oppenheimer broker accused of assigning his client service associate to take his continuing education courses gets three-month suspension and fine.
