Sep 2, 2015

LPL Financial Ordered to Pay $6.3 Million in Restitution for Supervision Failures

FINRA censured and ordered LPL Financial LLC (LPL Financial) to pay $6.3 million for failures related to sales charge waivers. LPL Financial submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for the alleged widespread supervisory failures. LPL Financial is a brokerage and investment advisory firm with a principal place of business in Boston, Massachusetts. LPL Financial has been conducting securities business related activities since 1973. LPL Financial has over eighteen thousand registered representatives operating from nearly eleven thousand branch office locations.

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Aug 21, 2015

Chase investment Services Broker Suspended for Alleged Unsuitable Investment Recommendations

A complaint against Demitrios Hallas of New York was filed by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for alleged unsuitable investment recommendations. Hallas was associated with Chase Investment Services Corp. in 2007 as a General Securities Principal during the relevant period and has not been associated with a FINRA member since May 2014. According to a Form U-5 filed by Chase Investment Services, Hallas was terminated in 2012 for “job performance, including customer complaints alleging unauthorized trades and failure to disclose fee.”

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Aug 7, 2015

First Allied Representative Daniel Grieco Suspended by FINRA

Daniel Grieco of Middletown, New Jersey submitted a Letter of Acceptance, Waiver and Consent (AWC), without admitting or denying the findings, to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly recommending trades to customers without having reasonable grounds to believe the investments were suitable. Grieco entered the securities industry in 1983 and has been registered as a General Securities Representative at FINRA member First Allied Securities, Inc. since August 2010. FINRA found that between July 21, 2008 and July 19, 2013, Grieco recommended and caused to be executed transactions of various leveraged and inverse-leveraged ETFs in 15 customer accounts. The ETFs were designed to achieve their designed to achieve their objectives over the course of one day. However, the ETF were held for much longer periods, in some cases for more than five years. FINRA alleged that Grieco, in extending the holding period of the ETFs, failed to appreciate the nature of the ETFs at the time of his recommendations, to wit, that they were not designed to achieve their objectives for extended holding periods. Therefore, FINRE concluded that Grieco did not have reasonable grounds to believe his recommendations were suitable and thereby violated NASD Rules 2310 and 2010.

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Aug 5, 2015

Ameriprise Representative Bart Ellis Barred for Unauthorized Trades and Falsifications

Bart Ellis of Chicago, Illinois was barred from association with any FINRA member in any capacity for making trades without a customer’s permission, falsifying customer documents and for failing to provide testimony by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA). After entering the securities industry in 2001, Ellis was a representative for Ameriprise Financial Services, Inc. from November 2007 until his termination in October 2012 for violating company policy. FINRA alleged that Ellis completed several trades in a customer’s account without discussing he trades prior to their execution. Specifically between 2009 and August 2012 Ellis allegedly made routine trades in the clients’ accounts without ever discussing the activities. While the customer allowed him access to his accounts due to trust, she never put in writing that Ellis could freely make trades in her account without any notice. FINRA found that these actions did not demonstrate high standards of commercial honor and were therefore in violation of NASD Rule 2510 and FINRA Rule 2010.

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Aug 4, 2015

LPL Financial Fined for Failing to Comply with MSRB and TRACE Requirements

The Department of Market Regulation of the Financial Industry Regulatory Authority (FINRA) received a Letter of Acceptance, Waiver and Consent (AWC) from LPL Financial LLC (LPL Financial) for allegedly failing to report securities transactions and failing to show the correct time of execution of several brokerage orders. The Department of Market Regulation conducted two reviews on LPL Financial in 2010 regarding the firm’s compliance with Municipal Securities Rulemaking Board (MSRB) and Trade Reporting and Compliance Engine (TRACE) requirements.

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Aug 3, 2015

Ameriprise Representatives David and Sian Harari Barred for Falsifying Information

David Harari and his wife Sian Harari of San Antonio, Texas were accused by the Department of Enforcement of the Financial Regulatory Authority (FINRA) to have provided false information to a FINRA member firm, falsely obtain customer funds and to have failed to disclose tax liens on a Form U4. David Harari entered the securities industry in 1999 when he joined Ameriprise Financial Services, Inc. Much of his services at Ameriprise as a registered investment advisor included providing clients with financial planning services for which he charged a flat fee. He also received commissions for the sale of other investment products. In July 2002, David’s wife Sian began working for him as an unregistered assistant.

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