Enforcement – Page 10 – Financial Treason & Crime

03/05/201905/13/2020

Fined: TriPoint Global Equities, LLC Fined by FINRA

TriPoint Global Equities, LLC Fined by FINRA

5 March 2019

An Offer of Settlement was issued in which the firm was censured, fined $100,000, ordered to pay disgorgement of commissions in the amount of $34,001, plus interest, prohibited for a period of 12 months from directly or indirectly receiving, in any manner, any penny stock in any form and required to submit a certification that its policies and procedures are reasonably designed with respect to its compliance with FINRA Rule 3310 and the registration requirements of Sections 5(a) and 5(c) of the Securities Act of 1933, including in connection with the firm’s private placement business and any offered securities.

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03/04/201905/13/2020

Fined: Great Point Capital LLC Fined by FINRA

Great Point Capital LLC Fined by FINRA

4 March 2019

An AWC was issued in which the firm was censured and fined $20,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it inaccurately or untimely submitted Reportable Order Events (ROEs) to the Order Audit Trail System (OATS™).

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02/19/201905/13/2020

Suspended: CSSC Brokerage Services, Inc. Suspended by FINRA

CSSC Brokerage Services, Inc. Suspended by FINRA

19 February 2019

An Office of Hearing Officers (OHO) decision became final in which the firm was fined $120,000, suspended from participating in private securities offerings in all capacities for one year and ordered to pay $130,000, plus interest, jointly and severally, in restitution to customers. The sanctions were based on findings that the firm willfully violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and violated FINRA Rule 2020 by defrauding investors by offering and selling securities through a bridge loan offering designed to keep its floundering parent company afloat after more than three years of failed deals, significant business losses and mounting debts that the parent company could not pay.

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02/14/201905/13/2020

Fined: Cantone Research Inc. Fined by FINRA

Cantone Research Inc. Fined by FINRA

14 February 2019

The firm, Anthony Cantone and Christine Cantone appealed a National Adjudicatory Council (NAC) decision to the Securities and Exchange Commission (SEC). The firm was fined $150,000, jointly and severally, with Anthony Cantone and fined $73,000, jointly and severally, with Christine Cantone. Anthony Cantone was suspended from association with any FINRA member in all capacities for 15 months. Christine Cantone was suspended from association with any FINRA member in any principal and supervisory capacity for two years and required to requalify by examination as a securities principal upon completion of her suspension.

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02/13/201905/13/2020

Fined: Kestra Investment Services, LLC fka NFP Advisor Services, LLC Fined by FINRA

Kestra Investment Services, LLC fka NFP Advisor Services, LLC Fined by FINRA

13 February 2019

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured, fined $225,000 and required to provide FINRA with a plan to remediate eligible customers who qualified for, but did not receive, the applicable mutual fund sales-charge waiver or appropriate share class. As part of this settlement, the firm agrees to pay restitution to eligible customers, which is estimated to total $1,947,704 (i.e. the amount eligible customers were overcharged, inclusive of interest).

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01/30/201905/13/2020

Fined: Revere Securities LLC Fined by FINRA

Revere Securities LLC Fined by FINRA

30 January 2019

An AWC was issued in which the firm was censured and fined $25,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to accurately report municipal securities transactions to the Real-time Transaction Reporting System (RTRS) and failed to maintain reasonably designed WSPs related to municipal securities.

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01/23/201905/13/2020

Fined: Hennion & Walsh, Inc. Fined by FINRA

Hennion & Walsh, Inc. Fined by FINRA

23 January 2019

An AWC was issued in which the firm was censured, fined $165,000, ordered to pay $305,438.83 in restitution to customers, and shall certify to FINRA that it has established and implemented policies, procedures and internal controls reasonably designed to address and remediate the issues identified in the AWC.

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01/14/201905/13/2020

Fined: Advisory Group Equity Services Ltd. Fined by FINRA

Advisory Group Equity Services Ltd. Fined by FINRA

14 January 2019

An AWC was issued in which the firm was censured and fined $20,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a reasonable supervisory system with respect to the retention and review of emails of newly hired representatives.

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01/10/201905/13/2020

Fined: CFD Investments, Inc. Fined by FINRA

CFD Investments, Inc. Fined by FINRA

10 January 2019

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured and fined $125,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish, maintain and enforce a supervisory system and written supervisory procedures (WSPs) reasonably designed to ensure that its registered representatives’ recommendations of variable annuities complied with applicable securities laws and regulations and FINRA rules.

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12/21/201805/13/2020

Fined: J.P. Morgan Securities LLC Fined by FINRA

J.P. Morgan Securities LLC Fined by FINRA

21 December 2018

An AWC was issued in which the firm was censured and fined $560,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that its supervisory system, including its WSPs, did not provide for supervision reasonably designed to achieve compliance with Rules 605 and 606 of Regulation NMS, and Securities Exchange Act of 1934 Rule 10b-10, and FINRA Rule 7450.

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12/20/201805/13/2020

Fined: Chardan Capital Markets LLC Fined by FINRA

Chardan Capital Markets LLC Fined by FINRA

20 December 2018

An AWC was issued in which the firm was censured, fined $75,000 and required to provide written reports to FINRA concerning its implementation and the effectiveness of its policies, systems, and procedures (written and otherwise) and training, to ensure the firm is in compliance with Rule 101 of Securities and Exchange Commission (SEC) Regulation M, and FINRA Rule 5190(c)(1)(A) and (B).

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12/19/201805/13/2020

Fined: Cetera Advisor Networks LLC Fined by FINRA

Cetera Advisor Networks LLC Fined by FINRA

19 December 2018

An AWC was issued in which the firm was censured, fined $700,000 and ordered to pay $691,755.27, plus interest, in restitution to customers. The firm shall also certify to FINRA that it has established and implemented policies, procedures and internal controls reasonably designed to address and remediate the issues identified in the AWC.

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12/18/201805/13/2020

Fined: Tradition Securities and Derivatives Inc. Fined by FINRA

Tradition Securities and Derivatives Inc. Fined by FINRA

18 December 2018

An AWC was issued in which the firm was censured, fined $100,000 and required to submit a certification that the firm’s policies and procedures were reasonably designed with respect to the firm’s compliance with FINRA Rule 3310, the requirements of the Bank Secrecy Act and the regulations promulgated thereunder. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish or implement an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of suspicious transactions.

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12/17/201805/13/2020

Fined: Windsor Street Capital, LP fka Meyers Associates, L.P. Fined by FINRA (December 2018)

Windsor Street Capital, LP fka Meyers Associates, L.P. Fined by FINRA

17 December 2018

An Office of Hearing Officers (OHO) decision became final in which the firm was censured and fined $500,000. The sanctions were based on findings that the firm failed to establish and maintain a reasonable supervisory system and failed to reasonably supervise two registered representatives and their unsuitable trading in connection with trading in an account owned, through a trust, by an elderly couple.

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12/14/201805/13/2020

Fined: Aegis Capital Corp. Fined by FINRA (December 2018)

Aegis Capital Corp. Fined by FINRA

14 December 2018

An AWC was issued in which the firm was censured and fined $64,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report to the Trade Reporting and Compliance Engine® (TRACE®) transactions in TRACE-eligible corporate debt securities and transactions in TRACE-eligible securitized products within the time required by FINRA Rule 6730(a).

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