New York Stockbroker Fraud Attorney - Law Offices of Robert Wayne Pearce

Sep 30, 2016

National Securities Broker Fined and Suspended for Fraudulent Wire Transfers

Stephanie Lynn Fagenson, of New York, NY, allegedly caused two fraudulent wire disbursements to be transferred from her customer’s account to a third-party bank. According to FINRA, Ms. Fagenson received an email from an imposter posing as her customer requesting $100,000 to be wired to a third-party bank account. Ms. Fagenson allegedly processed the wire request without orally confirming the request with the customer, as was required by her member firm. Two weeks later, Ms. Fagenson purportedly received another email from the imposter requesting another wire transfer. This time, the request was for $200,000 and, again, Ms. Fagenson allegedly processed the wire without orally confirming with her customer. Ten days following the second wire transfer, Ms. Fagenson supposedly found out in a conversation with her customer that the customer’s email account had been hacked and that none of the wire requests had come from the customer. FINRA assessed a fine of $5,000 and suspended Ms. Fagenson from association with any FINRA member in any capacity for 45 days. The suspension is in effect from August 15, 2016 through September 28, 2016.

Halcyon Cabot Partners Broker Barred by FINRA for False and Misleading Offering Documents

Jason Lee Reid, a former broker at the New York-based Halcyon Cabot Partners, LTD (Halcyon Cabot), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he created and solicited private securities offering documents which contained materially false and misleading information. FINRA found that Jason Lee Reid, of New York, NY, knew or should have known that the private offering documents he created and used to solicit investors contained false and misleading information and failed to discuss material facts. According to FINRA, the offering documents failed to note the material risks posed by investing in the company and contained false and misleading statements regarding the company’s future business prospects.