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.
11 June 2019
An AWC was issued in which the firm was suspended from accepting deposits of stock certificates and liquidating previously deposited certificated securities until it implements measures to remedy the AML violations addressed in the AWC, fined $250,000 and ordered to pay $512,261, plus interest, in restitution to customers.
2 May 2019
An OHO decision became final after the firm withdrew its appeal to the National Adjudicatory Council (NAC). The firm was suspended from association with FINRA in all capacities for 45 business days, censured, fined $495,000, ordered to offer rescission to customers, ordered to impose a six-month pre-use filing requirement for all of its communications with customers and required to retain an independent outside consultant to review and revise the firm’s supervisory procedures.