Enforcement – Page 5 – Financial Treason & Crime

12/12/201905/13/2020

Fined: Jefferies Execution Services, Inc. Fined by FINRA

Jefferies Execution Services, Inc. Fined by FINRA

An AWC was issued in which the firm was censured and fined $215,000, of which $18,800 is payable to FINRA and the remaining will be paid to other various self-regulatory organizations. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it did not establish, maintain and enforce a supervisory system or WSPs reasonably designed to monitor for potential layering or spoofing by its direct market access clients.

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12/10/201905/13/2020

Fined: Aeon Capital Inc. Fined by FINRA

Aeon Capital Inc. Fined by FINRA

An AWC was issued in which the firm was censured, fined $45,000, of which $10,000 is joint and several with Bruno, required to retain one or more qualified independent consultants to conduct a comprehensive review of the adequacy of its compliance with FINRA Rule 3170 (the Taping Rule) and required to comply voluntarily with the Taping Rule for an additional 18 months. Bruno was fined $10,000, jointly and severally with the firm, and suspended from association with any FINRA member in any principal capacity for 30 business days.

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12/06/201905/13/2020

Fined: Nomura Securities International, Inc. Fined by FINRA

Nomura Securities International, Inc. Fined by FINRA

An AWC was issued in which the firm was censured and fined $300,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to comply with FINRA’s short interest reporting requirements concerning the reporting of certain foreign-listed securities. The findings stated that the firm experienced a system-related coding issue that resulted in the exclusion of certain foreign-listed securities from its short interest submissions to FINRA. In addition, the firm inaccurately reported short interest positions. Upon receiving notification from FINRA of the reporting deficiencies, the firm identified and corrected the coding issue.

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12/06/201905/13/2020

Fined: KGS-Alpha Capital Markets, L.P. nka BMO Capital Markets Corp. Fined by FINRA

KGS-Alpha Capital Markets, L.P. nka BMO Capital Markets Corp. Fined by FINRA

An AWC was issued in which the firm was censured and fined $30,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that due to a misunderstanding as to how to determine the time of execution and manual errors by its employees, it failed to report to the Trade Reporting and Compliance Engine (TRACE®) the correct time of execution for transactions in TRACEeligible securitized products.

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12/05/201905/13/2020

Fined: Key Investment Services LLC Fined by FINRA

Key Investment Services LLC Fined by FINRA

An AWC was issued in which the firm was censured, fined $425,000, ordered to pay $589,221.66, plus interest, in restitution to customers, ordered to pay disgorgement to customers in the amount of $134,169.40, plus interest, and is also required to certify in writing to FINRA that it has implemented supervisory systems and WSPs reasonably designed to address each of the areas of conduct identified in the AWC, and to achieve compliance with suitability requirements for unit investment trust (UIT) transactions. In determining the appropriate sanction in this matter, FINRA considered, among other factors, that the firm previously paid $470,818.75 in restitution to complaining and non-complaining customers.

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12/04/201905/13/2020

Fined: PUMA Capital, LLC Fined by FINRA

PUMA Capital, LLC Fined by FINRA

An AWC was issued in which the firm was censured and fined $15,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to implement policies and procedures to reasonably avoid displaying, or engaging in a pattern or practice of displaying, locking or crossing quotations in over-the-counter (OTC) equity securities.

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12/04/201905/13/2020

Fined: Chelsea Morgan Securities, Inc. dba Chelsea Financial Services Fined by FINRA

Chelsea Morgan Securities, Inc. dba Chelsea Financial Services Fined by FINRA

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured, fined $15,000, ordered to pay $68,899, plus interest, in restitution to customers and required to review and revise, as necessary, its supervisory system and written supervisory procedures (WSPs) regarding supervision of excessive trading. A reduced fine was imposed after considering, among other things, the firm’s revenues and financial resources, as well as its agreement to pay full restitution to the affected customers.

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12/03/201905/13/2020

Fined: International Assets Advisory, LLC Fined by FINRA

International Assets Advisory, LLC Fined by FINRA

An AWC was issued in which the firm was censured, fined $30,000 and ordered to pay $92,805.13, plus interest, in restitution to customers. 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, including WSPs, reasonably designed to ensure compliance with FINRA Rule 2111 in relation to the sale of non-traditional exchange traded products (NT-ETPs).

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12/02/201905/13/2020

Fined: D.A. Davidson & Co Fined by FINRA

D.A. Davidson & Co Fined by FINRA

An AWC was issued in which the firm was censured, fined $85,000 and required to provide to FINRA a plan for reviewing the securities detailed in the AWC to identify and then provide notice to the issuers of inaccuracies in the issue price certificates. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that in connection with municipal offerings, it provided inaccurate or misleading statements in its issue price certificates related to the percentage of each maturity that was sold, or was reasonably expect to be sold, to the public.

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11/21/201905/13/2020

Fined: Coda Markets, Inc. fka PDQ ATS, Inc. Fined by FINRA

Coda Markets, Inc. fka PDQ ATS, Inc. Fined by FINRA

An AWC was issued in which the firm was censured, fined $90,000 and required to review and revise its systems and written procedures regarding the supervision of its Order Audit Trail System (OATS™) reporting to ensure that the systems and procedures are reasonably designed to achieve compliance with FINRA Rule 7450 and to implement and test all coding changes necessary to remediate the violations identified in the AWC. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report Reportable Order Events (ROEs) to OATS and reported ROEs that contained inaccurate, incomplete or improperly formatted data.

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11/20/201905/13/2020

Fined: NYLIFE Securities LLC Fined by FINRA

NYLIFE Securities LLC Fined by FINRA

An AWC was issued in which the firm was censured, fined $250,000, ordered to pay $76,643.47, plus interest, in restitution to customers for realized losses, ordered to offer rescission to customers for unrealized losses totaling approximately $250,000, plus interest, and ordered to certify in writing that it has reviewed its systems for enforcing its written procedures governing the suitability of recommendations to purchase mutual funds, and that it has established and implemented systems for enforcing those procedures that are reasonably designed to achieve compliance with FINRA Rule 3110. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to enforce its written procedures for supervising the suitability of sales of higher-risk mutual funds that were subject to significant volatility.

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11/12/201905/13/2020

Fined: BGC Financial, L.P. Fined by FINRA

BGC Financial, L.P. Fined by FINRA

An AWC was issued in which the firm was censured and fined $40,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to immediately execute, route, or display customer limit orders in over-the-counter securities. The findings stated that the violations resulted from the firm’s delayed handling of limit orders that would lock or cross the market.

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11/04/201905/13/2020

Fined: C. L. King & Associates, Inc. Fined by FINRA

C. L. King & Associates, Inc. Fined by FINRA

A National Adjudicatory Counsel (NAC) decision became final in which the firm was censured, fined $342,000 and ordered to retain an independent consultant and Miller was fined $20,000, suspended from association with any FINRA® member in any principal and supervisory capacity for three months and required to requalify by examination before acting in any principal or supervisory capacity.

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10/31/201905/13/2020

Fined: Aurora Capital LLC Fined by FINRA

Aurora Capital LLC Fined by FINRA

An AWC was issued in which the firm was censured, fined $15,000, ordered to certify to FINRA that it has adopted and implemented policies, procedures and systems that are reasonably designed to address each of the areas of conduct identified in the AWC, that it has completed a risk-based retrospective review of electronic communications sent or received by its associated personnel reasonably designed to achieve compliance with FINRA Rule 3110(b)(4) and that it has completed an inspection of each of its offices to achieve compliance with FINRA Rule 3110(c).

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10/31/201905/13/2020

Fined: Alexander Capital, L.P. Fined by FINRA

Alexander Capital, L.P. Fined by FINRA

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured and fined $45,000, and Sullivan was fined $5,000, suspended from association with any FINRA® member in any financial and operations principal (FINOP) capacity for one month and required to requalify by examination as a FINOP. Without admitting or denying the findings, the firm and Sullivan consented to the sanctions and to the entry of findings that the firm conducted a securities business while failing to maintain its minimum net capital requirement.

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