SEC News
- SEC Charges Institutional Shareholder Services in Breach of Clients' Confidential Proxy Voting Information May 23, 2013FOR IMMEDIATE RELEASE2013-92 Washington, D.C., May 23, 2013 — The Securities and Exchange Commission today charged a Rockville, Md.-based proxy adviser for failing to safeguard the confidential proxy voting information of clients participating in a number of significant proxy contests. Additional Materials SEC Order An SEC investigation found that an employe […]
- SEC Charges City of South Miami with Defrauding Investors About Tax-Exempt Status of Municipal Bonds May 22, 2013FOR IMMEDIATE RELEASE2013-91 Washington, D.C., May 22, 2013 — The Securities and Exchange Commission today charged the City of South Miami, Fla., with defrauding bond investors about the tax-exempt financing eligibility of a mixed-use retail and parking structure being built in its downtown commercial district. Additional Materials SEC Order An SEC investiga […]
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
TAG | fraud by brokers
18
FINRA Report on Misappropriating Customers Funds
Comments off · Posted by Securities Lawyer in FINRA
FINRA publishes this quarterly review to provide firms with a sampling of recent disciplinary actions involving misconduct by registered representatives. This sample includes settled matters and decisions in litigated cases (National Adjudicatory Council (NAC) decisions and SEC decisions in FINRA cases). These summaries call attention to, and remind registered representatives and member firms of, specific conduct that violates FINRA rules and may result in disciplinary action.
The following was published on FINRA’s website, October, 2012
“Fraudulently Misappropriating Customer Funds”
FINRA settled a matter involving a registered representative who misled two
customers to convince them to transfer approximately $100,000, which the registered representative subsequently misappropriated. The registered representative fraudulently misrepresented to one customer that he would use the customer’s money to purchase corporate bonds.
In response, the customer transferred $47,000 from his brokerage account to the registered representative. This registered representative deposited the
funds into his personal bank account, used the money for personal expenses and never purchased the corporate bonds.
The registered representative indicated to a second customer that he would use the customer’s funds to purchase a certificate of deposit (CD). The customer transferred approximately $53,000 to the registered representative
for the purchase. The registered representative deposited the funds into his personal bank account and used the money to cover personal expenses. He did not purchase the CD.
FINRA found that the representative’s conduct violated Section 10(b) of the Exchange Act (fraud); Exchange Act Rule 10b-5 (fraud); NASD Rules 2120** (fraud), 2330(a)† (customers’ securities or funds) and 2110‡ (ethical standards), and FINRA Rules 2150(a) (improper use of customer funds) and 2010 (ethical standards).
Because of the registered representative’s violations, FINRA barred him from associating with any firm in any capacity.
(This ends the FINRA article.)
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide. For a free consultation on how to potentially recover your losses call: 888-760-6552, or you may visit our website and complete the online form at: http://www.securitieslawyer.com.
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21
Mackinac Island Rep, Gary Cousino, Barred by FINRA
Comments off · Posted by Securities Lawyer in FINRA
Gary Lee Cousino (CRD #726486, Registered Representative, Mackinac Island, Michigan)
has been barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Cousino consented to the described sanction and to the entry of findings that he failed to respond to FINRA requests for information regarding its investigation of lawsuits and an arbitration action filed by a prior securities customer alleging, among other things, an unauthorized trade, fraud, unsuitability and breach of fiduciary duty by Cousino.
Cousino stated that through his attorney, he had sent FINRA a letter declining to respond in any manner to FINRA’s requests for information.
(FINRA Case #2010023057601 )
The information was obtained on FINRA’s website, “Disciplinary and Other Actions, June, 2012.”
Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained losses due to your stock broker or financial advisor’s recommendations, please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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