Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
James Adam Paquette Barred by FINRA
The NAC dismissed Paquette’s appeal of an OHO decision. Paquette failed to provide the required information and as a result his appeal was considered abandoned, therefore he is barred from association with any FINRA member in all capacities.
Paul William Petrillo Barred by FINRA
An AWC was issued in which Petrillo was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Petrillo consented to the sanction and to the entry of findings that he placed discretionary orders to purchase or sell securities in customers’ outside securities accounts without notifying his member firm of his authority to do so or the executing firm of his association with his firm. The findings stated that Petrillo also opened a family trust securities account over which he had trading authority away from his firm but did not notify it of the account’s existence.
Wedbush Securities Inc. Fined by FINRA
An AWC was issued in which the firm was censured and fined $90,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it misreported its short positions in equity securities that must be reported pursuant to FINRA Rule 4560 by overstating its short positions and the number of accounts with short positions.
Royal Alliance Associates, Inc. fined by FINRA
An AWC was issued in which the firm was censured, fined $400,000 and required to 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.
An Offer of Settlement was issued in which Gil was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, Gil consented to the sanction and to the entry of findings that he converted approximately $2,500 from an 82-year-old widow and former bank customer to whom he was providing financial advice away from his member firm. The findings stated that Gil used the customer’s credit cards without her authorization to charge personal expenses. These included spa massages, sporting goods, airline baggage fees and foreign currency cash advances, as well as expenses incurred during an overseas trip to Madrid, Spain, including at a hotel, perfume store, museum and flamenco show.
Prudential Investment Management Services LLC Fined by FINRA
An AWC was issued in which the firm was censured, fined $1,000,000 and required to retain one or more qualified independent consultants not unacceptable to FINRA to conduct a comprehensive review of the adequacy of its compliance with FINRA rules in connection with the violations described in the AWC. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it disseminated inaccurate information about group variable annuities expense ratios and inaccurate historical performance information about investment options offered in those annuities.
Citigroup Global Markets Inc. Fined by FINRA
An AWC was issued in which the firm was censured, fined $225,000 and required to revise its supervisory system and WSPs. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it effected a short sale for its own account without borrowing the security or entering into a bona fide arrangement to borrow the security, and without documenting its compliance with the locate requirement for short sale transactions.
Spencer Edwards, Inc. Fined by FINRA
A NAC decision became final in which the firm was fined $3,400,000 and ordered to pay disgorgement in the amount of $90,940, plus prejudgment interest. The NAC affirmed the findings in relevant part and modified the sanctions imposed by the OHO. Given that the firm is no longer operating as a broker-dealer, the NAC assessed, but did not impose, a suspension on the firm requiring it to engage an independent consultant who will monitor its supervisory and anti-money laundering procedures related to its microcap securities liquidation business.
Robert Russel Tweed Barred by FINRA
Tweed appealed a NAC decision to the SEC. Tweed was barred from association with any FINRA member in all capacities. The NAC affirmed the findings and modified the sanctions imposed by the OHO. The sanction was based on findings that Tweed violated Sections 17(a)(2) and (3) of the Securities Act of 1933 by misrepresenting and failing to disclose material facts in connection with the sale of interests in a private investment fund that he controlled and engaged in a course of conduct that operated as a fraud or deceit on the fund’s investors.
Gabriel William Hynes Barred by FINRA
An AWC was issued in which Hynes was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Hynes consented to the sanction and to the entry of findings that he refused to appear for onthe-record testimony requested by FINRA in connection with its investigation of his sale of a company’s structured cash flow investments comprised of pension streams.
Virtu Americas LLC fka KCG Americas LLC Fined by FINRA
An AWC was issued in which the firm was censured, fined $125,000, and required to revise its written methodology with respect to the areas described in the AWC. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it did not maintain a reasonable written methodology governing the execution and priority of all pending orders that it received for handling and execution.
Shlomo Strugano Barred by FINRA
An AWC was issued in which Strugano was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Strugano consented to the sanction and to the entry of findings that he failed to appear and provide testimony requested by FINRA in connection with an investigation into whether he had forged or falsified customer signatures and initials on account and transaction documents.
John A. Chrysadakis Barred by FINRA
An AWC was issued in which Chrysadakis was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Chrysadakis consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA after his member firm submitted a Uniform Termination Notice for Securities Industry Registration (Form U5) wherein it disclosed that he was permitted to resign while under internal review.
Wintrust Investments LLC fka Wayne Hummer Investments L.L.C. Fined by FINRA
An AWC was issued in which the firm was censured, fined $35,000 and required to revise its WSPs. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that in transactions involving municipal securities, it failed to exercise reasonable diligence in ascertaining the best market, and sell in such a market, so that the resultant price to the customer was as favorable as possible under prevailing market conditions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated Fined by FINRA
An AWC was issued in which the firm was censured and fined $150,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it executed municipal securities transactions with customers in an amount below an issue’s minimum denomination without an exception.
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
