The latest regulatory, disciplinary and criminal actions.
Enforcement
Finra Fines Kestra for Mutual Fund Share-Class Sale Violations
Continuing its pursuit of firms failing to offer eligible customers sales charge waivers, regulator orders independent brokerage to return $1.9 million to customers and pay $225,000 fine.
Finra Bars Broker for Gaming Merrill’s Mutual Fund Share Order System
To circumvent household limits on Class B shares, a former broker in Chicago entered fictitious sell orders into firm’s electronic order system, regulator says.
Woodbridge, Owner Ordered to Pay $1 Billion for Ponzi Scheme
Court approves SEC settlement stemming from $1.2 billion fraud involving more than 8,000 retail investors nationwide.
Finra Orders New Jersey Firm to Pay $470K for UIT Violations
Muni bond firm Hennion & Walsh allowed brokers to recommend unsuitable switches among proprietary unit investment trusts that cost customers more than $300,000 of unnecessary sales charges, according to a consent letter.
Finra Slams Indiana Independent Firm Over Variable Annuity Practices
CFD Investments, which promotes its “christian culture,” agrees to pay $125,000 for failing to supervise sales of products comprising 41% of its revenue.
Edward Jones Wins 11% of Damages Sought from Breakaway Broker
Arbitration panel orders Ohio broker and Prospera Financial to pay Jones almost $25,000 for allegedly soliciting more than 1,000 Jones clients after his 16-year career with firm.
Former Morgan Stanley Brokers Seek to Revive Class-Action Discrimination Claims
Morgan Stanley responds that they have exhausted their attempts to prove racial bias in account distribution, teaming and other areas.
Ex-Morgan Stanley Broker Loses Bid to Nullify $2.6 Mln Note Balance
Boca Raton broker who asked arbitrators for $5 million in wrongful termination claim instead is ordered to pay off his forgivable loan balance.
Judge Denies Wells’ Bid to Quash Brokers’ Overtime Claims
Three former brokers can bring a class-action claim for overtime pay they allegedly earned as trainees in a non-Finra forum.
Lottery Winner, NFL Star Win $4.2 Mln Arb Award from Morgan Stanley
Panel finds firm liable for negligent supervision of former broker who solicited investments from Asante Samuel and James Groves in nightclubs.
Year in Review: Top Regulatory Stories of 2018
Top 5 regulatory stories, ranked by page views, in 2018