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Fined: McDonald Partners LLC Fined by FINRA

Fined

McDonald Partners LLC Fined by FINRA

22 March 2019

An AWC was issued in which the firm was censured and fined $22,500. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report certain municipal securities transactions to the Municipal Securities Rulemaking Board’s (MSRB) real-time transaction reporting system. The findings stated that the firm failed to report both the purchases into its riskless principal account and the sales to its investment adviser clients of certain riskless principal transactions.

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Fined: Arbor Research & Trading, LLC Fined by FINRA

Fined

Arbor Research & Trading, LLC Fined by FINRA

21 March 2019

An AWC was issued in which the firm was censured, fined $25,000 and required to enhance its supervisory system, including its WSPs, to ensure it establishes, documents and maintains a system of risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory and other risks of its business activity related to market access.

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Release: Pawar Law Group Announces A Securities Class Action Lawsuit Against 22nd Century Group, Inc. – XXII

Release

Pawar Law Group Announces A Securities Class Action Lawsuit Against 22nd Century Group, Inc. – XXII

20 March 2019

Pawar Law Group announces that a class action lawsuit has been filed on behalf of shareholders who purchased shares of 22nd Century Group, Inc. (NYSE:XXII) from February 18, 2016 through October 25, 2018, inclusive (the “Class Period”). The lawsuit seeks to recover damages for 22nd Century Group investors under the federal securities laws. If you wish to serve as lead plaintiff, you must move the Court no later than March 22, 2019.

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Fined: Corinthian Partners, L.L.C. Fined by FINRA

Fined

Corinthian Partners, L.L.C. Fined by FINRA

18 March 2019

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured, fined $30,000 and required to submit a written certification to FINRA that its policies, systems and procedures (including written procedures) and training, in connection with non-traditional exchange traded products (non-traditional ETPs), are reasonably designed to achieve compliance with FINRA Rule 2111(a) relating to suitability.

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Article: Short Selling and the New Market Manipulation

Article - Media, Publications

Short Selling and the New Market Manipulation

John C. Coffee, Jr. and Joshua Mitts,  18 March 2019

Stock market manipulation has been around since shortly after stock markets were invented. Everyone is familiar with the methodology in the standard “pump and dump” scheme: False rumors are circulated, the stock is bid up by the manipulators, supply might be constrained, and, once the public’s appetite is aroused, the stock is dumped by the manipulators.

But the internet has changed all that. No need exists today for the boiler shop or its battery of phones or even carefully assembled lists of suckers. All that one needs today is to put one’s message (written under a pseudonym) on a blog that features hot news about individual stocks. Of these sites, the best known and most watched is Seeking Alpha, whose “Short Ideas” column contains numerous posts recommending that specific stocks be shorted. Reversing the old pattern, the focus is no longer on touting stocks for an immediate rise, but rather on suggesting a dark downside. Once the professional media may have played a gatekeeper role, refusing to publish wild and unsubstantiated reports. But on the blogs, it is the Wild West today. Continue reading “Article: Short Selling and the New Market Manipulation”

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Fined: Cowen and Company, LLC Fined by FINRA

Fined

Cowen and Company, LLC Fined by FINRA

18 March 2019

An AWC was issued in which the firm was censured, fined $175,000 and required to revise its supervisory system and WSPs with respect to its compliance with its OATS reporting obligation. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it transmitted reports to OATS that contained inaccurate, incomplete, or improperly formatted data. The findings stated that the ROEs contained inaccurate Firm Order Identifications (FOIDs).

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Article: Vanguard supervisor and brother-in-law stole over $2M from dead customers and dormant accounts, feds say

Article - Media, Publications

Vanguard supervisor and brother-in-law stole over $2M from dead customers and dormant accounts, feds say

Joseph N. DiStefano, and Erin Arvedlund, 16 March 2019

A former Vanguard Group supervisor stole more than $2 million by taking money from dead or inactive customers’ accounts before state treasurers could take custody of the unclaimed money, prosecutors say.

Scott Capps of Coatesville pleaded guilty to conspiracy to commit mail fraud, two counts of money laundering, and two years of false tax returns on Thursday before U.S. District Judge Michael M. Baylson. Federal prosecutors said Capps, who worked for 23 years for the Malvern-based investment giant, more than tripled his income for 2013 at customers’ expense, with help from his brother-in-law and other accomplices. Continue reading “Article: Vanguard supervisor and brother-in-law stole over $2M from dead customers and dormant accounts, feds say”

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Fined: Accelerated Capital Group, Inc. Fined by FINRA

Fined

Accelerated Capital Group, Inc. Fined by FINRA

15 March 2019

An Office of Hearing Officers (OHO) decision became final in which the firm was censured, fined $400,000 and ordered to pay $422,029.53, plus interest, in restitution to six customers. The sanctions were based on findings that the firm failed to establish and maintain a supervisory system and written procedures reasonably designed to achieve compliance with applicable federal securities laws, regulations and NASD®/FINRA rules.

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Release: Health Insurance Innovations, Inc. Investor Reminder Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a federal securities class action lawsuit has been filed in the United States District Court for the Middle District of Florida against Health Insurance Innovations, Inc.

Release

Health Insurance Innovations, Inc. Investor Reminder: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a federal securities class action lawsuit has been filed in the United States District Court for the Middle District of Florida against Health Insurance Innovations, Inc.

14 March 2019

Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Middle District of Florida on behalf of all persons or entities who purchased or otherwise acquired Health Insurance Innovations, Inc. (the “Company” or “HIIQ”) (NASDAQ: HIIQ) securities between February 28, 2018 and November 27, 2018 (the “Class Period”), inclusive.

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Article: The Shopify Stock Bubble Can Only Keep Getting Bigger for so Long

Article - Media, Publications

The Shopify Stock Bubble Can Only Keep Getting Bigger for so Long

Dana Blankenhorn, 14 March 2019

I’ve been pretty hard on web store provider Shopify (NASDAQ:SHOP), but investors, and the Shopify stock price, have ignored me. Since tech bottomed at Christmas, Shopify shares have risen from less than $130 to their March 13 opening bid of $202. That gives the company a market cap of $22.4 billion, on 2018 revenue of $1.07 billion.

As far back as 2017 I predicted this would all end in tears, citing a report from short-sellers Citron Research that called Shopify a scam at $60 per share. More recently I noted its lack of operating cash flow and use in drop-ship scams. All this is still true. But it doesn’t disturb the bulls. One recent story calls Shopify a “virtual go-to destination for aspiring entrepreneurs and small businesses.”
Continue reading “Article: The Shopify Stock Bubble Can Only Keep Getting Bigger for so Long”

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Article: Factbox: European banks hit by Russian money laundering scandal

Article - Media, Publications

Factbox: European banks hit by Russian money laundering scandal

Reuters Staff, 08 March 2019

Several European banks are facing allegations of being involved in a Baltic money laundering scandal and failing to prevent tainted Russian money from flowing through their branches across the world. Continue reading “Article: Factbox: European banks hit by Russian money laundering scandal”

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Article: Senator Blumenthal seeks criminal investigation of shoddy military housing

Article - Media, Publications

Senator Blumenthal seeks criminal investigation of shoddy military housing

Andrea Januta, Deborah Nelson, M.B. Pell, 08 March 2019

WASHINGTON (Reuters) – U.S. senators demanded accountability for slum-like housing conditions on military bases across the country Thursday, with one calling for a criminal investigation of private landlords granted vast power over tenant housing. Continue reading “Article: Senator Blumenthal seeks criminal investigation of shoddy military housing”

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Fined: Sigma Financial Corporation Fined by FINRA

Fined

Sigma Financial Corporation Fined by FINRA

7 March 2019

An AWC was issued in which the firm was censured and fined $100,000. 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 WSPs reasonably designed to achieve compliance with securities laws, regulations and FINRA rules applicable to the sales of leveraged, inverse and inverse-leveraged ETFs.

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Fined: Parkland Securities, LLC Fined by FINRA

Fined

Parkland Securities, LLC Fined by FINRA

7 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 failed to establish, maintain and enforce a supervisory system and WSPs reasonably designed to achieve compliance with securities laws, regulations and FINRA rules applicable to the sales of leveraged, inverse and inverse-leveraged ExchangeTraded Funds (ETFs).

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Article: What’s Known About Massive Russia Money Laundering Scheme, ‘Troika Laundromat’

Article - Media, Publications

What’s Known About Massive Russia Money Laundering Scheme, ‘Troika Laundromat’

Christian Baumgaertel, 07 March 2019

The so-called Troika Laundromat was a financial network set up by a Russian investment bank to help clients move money out of the country and hide it. The scheme exported about $4.8 billion over seven years, with the help of a now-defunct Lithuanian bank.

That much we know from disclosures by the Organized Crime and Corruption Reporting Project [OCCRP] and its partner news organizations. Almost daily revelations over the last week have widened the group of banks involved and added to a picture of massive laundering — perhaps facilitated by the absence of a central enforcement agency in Europe. Continue reading “Article: What’s Known About Massive Russia Money Laundering Scheme, ‘Troika Laundromat’”