Emily 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 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 ReadingDavid 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.
Continue ReadingJeffrey Kerr of New Milford, Pennsylvania submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly participating in private securities transactions without his member firms approval. Kerr first became registered in the securities industry as a general securities representative (GSR) in 1996. In 2001, Kerr became a GSR at LaSalle St. Securities, LLC (LLS) and has remained there since. Without admitting or denying the FINRA finding for the sole purpose of the proceeding, Kerr agreed to the sanctions for which he allegedly participated in private securities transactions without providing prior notice to LLS.
Continue ReadingThe Department of Enforcement for the Financial Industry Regulatory Authority (FINRA) has brought disciplinary action to Kimberly Springsteen-Abbott of Holiday, Florida for improperly allocating funds. Mrs. Springsteen Abbott served at Commonwealth Capital Securities Corp. as a Chief Executive Officer (CEO), Chairperson, and Chief Compliance Officer (CCO) granting her control of funds at the firm. Mrs. Springsteen-Abbott had the authority to allocate the expenses to investment funds that were incurred in operating the business. After hearing the evidence, the FINRA hearing Panel found that Mrs. Springsteen-Abbott misused investors’ funds for three years by improperly allocating unrelated business expenses to investment funds that she controlled.
Continue ReadingMichael Bell, a former registered representative with the Boca Raton, Florida branch of Westpark Capital, Inc. submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he violated his member firm’s written supervisory procedures (WSPs) by sending misleading, promissory emails to clients from his personal email account. According to FINRA, Michael Bell used his personal email account to communicate with customers, both current and prospective, without the approval of Westpark Capital and in violation of the firm’s WSPs. Mr. Bell had been disciplined previously by Westpark Capital for alleged email related misconduct. Therefore, FINRA stated that Mr. Bell knew that using his personal email for customer correspondence was prohibited.
Continue ReadingThe Securities and Exchange Commission (SEC) has charged Wells Fargo Advisors with failing to maintain adequate controls in order to prevent one of its employees from using confidential customer information to engage in insider trading. Additionally, the SEC charged Wells Fargo Advisors with producing an altered document in a compliance review of the broker’s trading activities. This case, in which Wells Fargo has agreed to the monetary penalty of $5 million, is the first time the SEC has charged a brokerage firm for its failure to protect a customer’s confidential information, an important ruling at a time when many peoples’ personal information is reportedly being compromised due to computer hacking. According to the SEC’s order, a Wells Fargo broker received confidential information from a customer that Burger King was being acquired by private equity firm 3G Capital Partners. The broker, Waldyr Da Silva Prado Neto (Prado), then used that confidential information to enact trades ahead of the public announcement. The SEC has also charged Prado with insider trading, freezing his assets to prevent any transfers of the ill-gotten profits, alleged to be $175,000. The SEC’s order goes on to state that multiple groups responsible for compliance or supervision at Wells Fargo were told of the broker’s misuse of customer information, but failed to act. According to Andrew J. Ceresney, Director of the SEC’s Enforcement Division, “When investors entrust private information to their stockbrokers or investment advisors, they have the right to expect that it will not be exploited.” Wells Fargo admitted to the SEC’s findings and agreed to pay the $5 million penalty. Section 15(g) of the Securities Exchange Act of 1934 and Section 204A of the Investment Advisers Act of 1940 require broker-dealers and investments advisers to establish, maintain, and enforce policies and procedures reasonably designed to prevent the misuse of material nonpublic information. Brokerage firms like Wells Fargo Advisors have a legal duty to protect their customers’ confidential information and to supervise their brokers to ensure compliance and prevent violations of the rules and regulations of the securities industry.
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