Author Archives: FLSecurities
FINRA Fines Member $8 Million for Anti-Money Laundering Compliance Failures Relating to Penny Stock Transactions
The Financial Industry Regulatory Authority (“FINRA”) announced that it has levied fines against brokerage firm Brown Brothers Harriman & Co. (“BBH”), based in New York, and its former Global Anti-Money Laundering Compliance Officer Harold Crawford. In a Letter of Acceptance, Waiver, and Consent dated February 4, 2014 (“AWC”), BBH and Crawford consented to fines… Read More »
FINRA Issues Guidance to Investors on How to Achieve Greater Financial Security
The Financial Industry Regulatory Authority recently published a news release offering general financial guidance to the investing public. The FINRA Investor Education Foundation issued Five Do’s and Don’ts That Can Help You Achieve Greater Financial Security. According to its website, the FINRA Investor Education Foundation was established in 2003 and supports innovative research and… Read More »
FINRA Proposes Rule Change Calling For More Transparent Pricing of Non-Traded REITs
The Financial Industry Regulatory Authority (“FINRA”) has proposed a change to NASD Rule 2340 (Customer Account Statements) which would remove a firm’s requirement to include per share estimated values for non-traded real estate investment trusts (“REITs”) on its customers’ account statements. If the firm chooses to list the estimated per share values of non-traded… Read More »
S&P Downgrades Puerto Rico Municipal Bonds to Junk Status
In a long expected move, Standard & Poor’s (“S&P”) announced that it has downgraded general obligation municipal bonds issued by Puerto Rico to speculative grade or junk status. Many are now expecting a similar credit downgrade by ratings services Fitch and Moody’s. In its announcement, S&P stated that its decision is partially based on… Read More »
New York Judge Vacates $11 Million FINRA Arbitration Award Against Citigroup
An $11 million FINRA arbitration award against Citigroup and its employee, Edward James Mulcahy, has been vacated by a New York judge. Judge Charles Ramos of the Supreme Court of the State of New York entered an Order on January 2, 2014 vacating the July 2013 arbitration award issued by a panel of three… Read More »
Back From the Dead: Alleged Fraudster Who Was Declared Dead Arrested in Georgia
Aubrey Lee Price, an alleged fraudster who was missing and had been declared dead by a Florida judge last year at his wife’s request, was arrested when he was found alive and well in Brunswick, Georgia. According to CBS News, Price was pulled over for having tinted windows that were too dark. During the… Read More »
Florida Investment Adviser and Hedge Fund Sued For Alleged Misrepresentations After Facebook IPO
The Securities and Exchange Commission (“SEC”) and a private investor, Chirag Amin, have initiated lawsuits against a Tampa-based investment adviser, its principal, and an unregistered hedge fund. In an action filed in the United States District Court for the Southern District of Florida, the SEC formerly charged OM Investment Management, LLC (“OM Management”), its… Read More »
Investors in UBS Puerto Rico Municipal Closed-End Bond Funds Lost $1.66 Billion in 2013
According to InvestmentNews, investors in Puerto Rico closed-end municipal bond funds packaged and sold by UBS Financial Services, Inc. of Puerto Rico reportedly lost over $1.5 billion between January and September 2013. UBS Financial Services, Inc. of Puerto Rico marketed its UBS Puerto Rico Family of Funds to residents of Puerto Rico. According to… Read More »
FINRA Update: Securities Arbitrator Pay Going Up; Confidential Investor Information to be Redacted; and Senators Push for Tighter Expungement Guidelines for Brokers
The FINRA Board of Governors (“Board”) recently met to discuss revisions to several of its rules governing securities arbitrations between investors, brokerage firms, and brokers. The Board has authorized FINRA to file a number of proposed amendments to the FINRA Code of Arbitration Procedure for Customer Disputes with the Securities and Exchange Commission (“SEC”)…. Read More »
Alleged Investment Fraudsters Charged After Florida Investors Suffer $3 Million in Losses
The Florida Office of Financial Regulation (“FL OFR”) announced that six alleged investment fraudsters have been charged with causing $3 million in investment losses to Florida residents. According to FL OFR’s press release, the Broward County Sheriff’s Office arrested five Florida residents – Eddy Ubaldo Marin, Kenneth Saluk, Roberto Alford, Farrell Jeanty, and Peter… Read More »