The latest regulatory, disciplinary and criminal actions.
Enforcement
Finra Suspends Former LPL Star for Borrowing from Customer
Jeb Bashaw, a Houston-based independent broker with a history of litigation against LPL, receives four-month suspension, fine and a requirement to retake the Series 7 exam for borrowing $200,000 from a customer who was a “longtime friend.”
Finra Bars Broker Who Wouldn’t Cooperate In Personal Mail Probe
Advisor in Puerto Rico admitted to having misused Axa’s FedEx account but refused to participate in routine Finra probe of his dismissal.
RayJay Resolves Class-Action Suits Alleging Hidden Commissions: Court Filing
Plaintiffs claiming they were charged excessive execution and clearing fees in self-directed fee-based accounts say they have reached a settlement.
LPL to Pay $499K to Texas for Unregistered Securities Sales
The fine is tied to a broader $26 million settlement the independent broker-dealer reached last year with state securities regulators.
Mega-RIA Edelman Financial Engines Pursues Departing Advisors
Since September, Edelman has filed for temporary restraining orders and/or Finra arbitration damages against at least three advisors who jumped to rival firms.
Finra Prescribes Candor in Discussing Departing Brokers
Regulatory notice reminds member firms they must provide “timely and complete answers” and “reasonable contact information” about brokers who leave the industry or who join rivals.
Ex-LPL Broker Suspended for Selling “Life-Settlement” Insurance Investment
Texas broker sold a partnership to clients that bought life policy of a terminally ill individual, violating firm and Finra rules, and resulting in $1 million loss to investors.
Morgan Stanley Loses Bid to Mute Brokers Who Jumped to Rival
Dallas judge turns down request for a restraining order against two advisers producing more than $2 million who jumped a week ago to Steward Partners.
Former UBS Broker Wins Reduction in Note Balance Owed
Chicago-area broker who owed more than $505,000 on four promissory notes gets bill reduced by almost one-third after his lawyer argued that UBS system for collecting the debt violated Illinois wage laws.
Investors to Get $125 Mln from Firms Fessing Up to Fund Sale Violations
SEC says 79 investment advisers who self-reported selling expensive mutual fund share classes have settled charges.
Morgan Stanley ‘Shortchanged’ Broker in Retirement Program—Arbitrators
South Carolina broker who retired a year ago must decide whether to take $17,600 and continue in the Former Advisor Program or $131,820 and forego future payments, arbitration panel rules.