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New York Securities Lawyer Blog

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FINRA Fines E1 Asset Management $25,000 And Suspends Ron Itin and Ahsan Shaikah For Supervisory Failures

On June 5, 2015, E1 Asset Management, Inc. (“E1 Asset Management”), Ron Y. itin (“Itin”), and Ahsan R. Shaikh (“Shaikh”) submitted a Letter of Acceptance Waiver and Consent (“AWC”) to settle allegations by the Financial Industry Regulatory Authority (“FINRA”) that they collectively failed to maintain a reasonable supervisory system at…

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SEC Publishes Its Requests for Industry Comment Regarding Its Regulation of Exchange Traded Products

On June 12, 2015, the Securities and Exchange Commission (“SEC”) solicited public comment on its approval and regulation of exchange traded products (“ETPs”).  ETPs are similar to open-ended mutual funds, but can be bought and sold throughout the day at market prices, rather than net-asset value.  ETPs include, but are…

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Office of Compliance Inspections and Examinations Publishes New Retirement-Targeted Industry Reviews and Examinations Initiative

On Monday, June 22, 2015, the Securities Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) announced that it was launching a multi-year Retirement-Targeted Industry Reviews and Examinations (“ReTIRE”) Initiative.  The new ReTIRE Initiative follows OCIE’s 2015 Examination Priorities, which focuses on “examining matters of importance to retail investors…

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FINRA Fines Morgan Stanley Wealth Management $650,000 And Scottrade Inc. $300,000 For Failure To Supervise Wire Transfers

On June 22, 2015, the Financial Industry Regulatory Authority, Inc. (“FINRA”) announced that it had reached a near $1 million settlement with Morgan Stanley Wealth Management (“Morgan Stanley”) and Scottrade Inc. (“Scottrade”) for failing to supervise wire transfers.  Brad Bennett, Executive Vice President and Chief of Enforcement at FINRA, commented…

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Split Decision on Arbitration in Bank of America Case

This week, a Florida appeals court partially reversed a ruling denying Bank of America’s efforts to arbitrate various claims related to the Scott Rothstein Ponzi scheme. Bank of America, N.A. v. Beverly, Nos. 4D14-3167, 4D14-3168 (Fla. Dist. Ct. App. June 10, 2015). The appellate court ordered arbitration in a case…

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SEC Fines Deutsche Bank $55 Million for Overvaluing Derivatives Portfolio During Financial Crisis

Deutsche Bank has agreed to pay a fine of $55 million to settle charges by the SEC that it filed misstated financial reports during the height of the global financial crisis relating to a multibillion dollar portfolio of derivatives. The SEC’s multi-year investigation culminated in an Order Instituting a Settled…

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FINRA Releases Second Proposed Broker Compensation Rule for Comment

On May 28, 2015, the Financial Industry Regulatory Authority (“FINRA”) released its second proposed rule designed to help investors understand what financial incentives their broker may have to transition between member firms and how those transitions could affect the customer’s investments.  The complete FINRA release regarding the new rule may…

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LPL Financial LLC Violates FINRA Supervision Rules During Its Expansion

On May 6, 2015, LPL Financial LLC (“LPL”) submitted a Letter of Acceptance, Waiver and Consent (“AWC”) to the Financial Industry Regulatory Authority’s (“FINRA”) Department of Enforcement to settle allegations that LPL violated FINRA supervisory rules.  The AWC was submitted “without admitting or denying the findings,” and on the condition…

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FINRA’s Regulatory Arm Announces Strengthening of Sanction Guidelines for Fraudulent Conduct by Brokers

In a move intended to emphasize that FINRA’s ultimate mandate is to protect investors, the SRO’s National Adjudicatory Council last week issued newly-revised Sanction Guidelines including tougher ranges of recommended punishments to be meted out against member firms or brokers who commit fraud or make unsuitable recommendations to customers. Since…

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SEC Charges Veros Partners Alleging $15 Million Ponzi Scheme

  On April 22, 2015, the Securities and Exchange Commission (“SEC”) filed a Complaint in the District Court for the United States Southern District of Indiana, Indianapolis Division (the “Complaint”), against Veros Partners, Inc., Matthew D. Habb, Jeffery B. Risinger, Veros Farm Loan Holding LLC, Tobin J. Senefeld, FarmGrowCap LLC,…

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