Michael Zheng of New York, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly converting funds of a J.P. Morgan Chase customer for his own personal use.
Continue ReadingEmily Vitale of Indian Rocks Beach, Florida, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly falsifying documents resulting in faulty books and records.
Continue ReadingA 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.”
Continue ReadingDouglas Finlay Jr. of Point Pleasant Beach, New Jersey submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority under the allegations that he recommended and effected an unsuitable transaction in a customer’s account.
Continue ReadingMorgan Stanley & Co. and Morgan Stanley Smith Barney LLC of New York submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise and implement adequate written procedures to comply with Municipal Securities Rulemaking Board (MSRB) rules relating to short positions in tax-exempt municipal bonds.
Continue ReadingMerrion Securities, LLC (Merrion) of Westfield, New Jersey Submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to properly establish an escrow account for investor funds. Organized as a Limited Liability company and FINRA member since 1992, Merrion focuses primarily on general securities transactions with approximately 117 registered representatives within one branch office.
Continue ReadingNational Securities Corporation (NSC) located in Seattle, Washington submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial industry Regulatory Authority (FINRA) for allegedly failing to disclose to investors compensation they were receiving. NSC has been a registered FINRA member since 1947 and provides retail brokerage, investment banking and investment advisory services.
Continue ReadingDaniel 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.
Continue ReadingBart 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.
Continue ReadingThe 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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