Author Archives: FLSecurities
FINRA Increases Arbitrator Pay- Passes Costs to Parties
According to Regulatory Notice 14-49 (“RN 14-49”) issued by the Financial Industry Regulatory Authority (“FINRA”), FINRA is increasing the pay for arbitrators assigned to hear FINRA cases and passing the costs of the increase on to the parties. The new rule applies to all cases filed on or after December 15, 2014, it is… Read More »
Former Florida Broker Permanently Barred for Alleged Theft
According to his BrokerCheck Report, Jeffrey Brian Grove of Melbourne, Florida has been permanently barred from the financial services industry by the Financial Industry Regulatory Authority (“FINRA”). According to FINRA, Grove was employed as a registered representative at the Melbourne, Florida branch office of Charles Schwab & Co., Inc. from 1999 until he was… Read More »
SEC Approves Rule to Help Non-Traded REIT Investors
The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s (“FINRA”) proposed revisions to NASD Rule 2340 regarding per share estimated valuations of unlisted REITs held by customers. FINRA first submitted the proposed rule changes in January 2014. This week the SEC announced its approval of the proposed rule changes. No effective… Read More »
Brokerage Firm Success Trade Securities Expelled from FINRA and Ordered to Pay Restitution for Alleged Securities Fraud and Running a Ponzi Scheme
A Financial Industry Regulatory Authority (“FINRA”) hearing panel has expelled brokerage firm Success Trade Securities and ordered $13.7 million in restitution for alleged securities fraud and for running a Ponzi scheme. In addition to expelling the Washington, D.C. based firm, the FINRA hearing panel also barred Success’ President and CEO, Fuad Ahmed, from any… Read More »
SEC Files its First Enforcement Action for Whistleblower Retaliation Under the Dodd-Frank Act Against Hedge Fund Advisory Firm
The Securities and Exchange Commission (“SEC”) has brought its first enforcement action for whistleblower retaliation under the Dodd-Frank Act against hedge fund advisory firm, Paradigm Capital Management (“Paradigm”). According to Reuters, the SEC’s case stems from Paradigm’s alleged retaliation against its former head trader, James Nordgaard (“Nordgaard”), after Nordgaard made a whistleblower submission to… Read More »
FINRA Set to Resume Processing Securities Arbitration Cases Involving Puerto Rico Municipal Bonds
According to InvestmentNews, last month the Financial Industry Regulatory Authority (“FINRA”) announced that it had essentially stopped processing securities arbitration cases involving Puerto Rico municipal bonds. FINRA claimed it needed to address a number of challenges with the cases such as the fact that the primary language in Puerto Rico is Spanish and FINRA… Read More »
SEC Obtains Asset Freeze Against Florida Operators of Alleged Ponzi Scheme Targeting Investors to Invest in Virtual Concierge Machines
According to the Securities and Exchange Commission (“SEC”), a federal judge in Florida has issued a temporary asset freeze against two companies and their owners for allegedly operating a Ponzi scheme that encouraged investors to make purported investments in virtual concierge machines (VCM’s). According to the government, the companies, JCS Enterprises, Inc. (“JCS”) and… Read More »
FINRA Removes Securities Arbitrator From its Roster for Allegedly Lying About Being a Lawyer
According to Reuters and other news sources, a securities arbitrator has been removed from FINRA’s arbitrator roster after it was discovered that he allegedly lied about being a lawyer. A FINRA spokesperson reportedly confirmed to Reuters that securities arbitrator James H. Frank of Santa Barbara, California was removed from FINRA’s arbitrator pool in 2013…. Read More »
Florida Fraudster Sentenced to More Than Twelve Years in Prison for $68 Million Ponzi Scheme Targeting Haitians
George Theodule, formerly of Wellington, Florida, was sentenced for orchestrating a Ponzi-like affinity fraud scheme on fellow Haitians residing in the United States. In October 2013, Theodule agreed to plead guilty to one count of wire fraud in exchange for the government dropping the other 39 charges against him. According to the indictment, Theodule… Read More »
FINRA Update: BrokerCheck, Arbitrator Classification, and Expungement
The FINRA Board of Governors has accepted several rule proposals that will now make their way to the Securities and Exchange Commission (“SEC”) for review, public comment and final approval. BrokerCheck FINRA maintains the BrokerCheck database which contains the professional backgrounds of stock brokers, brokerage firms, and investment advisers. BrokerCheck is a free tool… Read More »