Per Financial Industry Regulatory Authority’s (FINRA) announcement this week, a former registered representative of Caldwell International Securities Corp., Richard Adams aka Rasheed Aree Adams, has been barred permanently from the securities industry for churning customer accounts, other securities violations, and failure to report many unsatisfied judgments and liens on his…
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Aegis Capital Fined By FINRA; Senior Management Suspended
FINRA has announced that it has fined Aegis Capital Corp. $950,000 for sales of unregistered penny stocks and anti-money laundering violations. According to FINRA, this fine was also related to supervisory failures within the firm. The firm was not the only one that FINRA appears to have come down hard…
This Week at Malecki Law
It was an eventful week at Malecki Law with prominent stories in the press, speaking engagements at legal educational organizations, appointments to bar association committees, and introduction to securities fraud in different communities. Malecki Law announced the filing of a $25 million FINRA claim against UBS Puerto Rico on…
This Week At Malecki Law: Attorneys Submit Letters to Members of the Congress to Advocate for Department of Labor’s Proposal Seeking to Hold Financial Advisors to a Higher Standard
This week, the attorneys at Malecki Law sent letters to several United States Senate and House of Representatives members, urging them to support the Department of Labor’s (DOL) proposal to hold financial advisors to a higher standard and act in the best interest of retirement investors. These members of the…
I’m FINRA Licensed and Under Internal Investigation: What Should I Do?
“My broker dealer wants me to meet with its lawyers.” This is the start of a FINRA registered representative’s worst nightmare. Your heart is pounding and your head starts to race. “Why me?” “What do they want to know?” “What could I have done?” “Are they going to ask me…
SEC Charges Malcolm Segal Of Running Ponzi Scheme From His Pennsylvania Office
The Securities and Exchange Commission (SEC) announced today that is has formally charged Malcolm Segal with running a Ponzi scheme and stealing investor money from his office in Pennsylvania. According to his BrokerCheck Report, Mr. Segal was formerly a registered stockbroker with Aegis Capital Corp. and Cumberland Advisors. Mr. Segal…
Broker Dealer Financial Services Corp. Fined By FINRA Over Nontraditional ETF Sales and Improper Supervision
Broker Dealer Financial Services Corp. (BDFS) based out of West Des Moines, Iowa just learned the hard way that nontraditional Exchange Traded Funds (ETFs) are risky, speculative investments and are not appropriate for all investors. The Financial Industry Regulatory Authority (FINRA) recently fined BDFS $75,000 for 1. failing to properly…
FINRA Bars Former Wells Fargo Broker Nicholas Hansen Harper
The Financial Industry Regulatory Authority (FINRA) has permanently barred Nicholas Hansen Harper. Harper worked in Wells Fargo’s Topeka, Kansas branch office from 1997 through 2013 according to his BrokerCheck Report. Per the Letter of Acceptance Waiver and Consent filed with FINRA, Harper resigned from Wells Fargo on August 7, 2013,…
FINRA Looks To Come Down Harder On Brokers And Firms Making Unsuitable Recommendations to Customers
What should happen to a financial advisor (FA) if they provide unsuitable and inappropriate investment advice to their clients? First, if the unsuitable advice given to a customer caused losses to that customer’s account, the customer has the option to sue the FA in FINRA arbitration. Investors can recover some…
JP Morgan Investigated By SEC and Other Authorities Over Sale of Proprietary Products
Is it okay for a broker-dealer to use bonuses and other incentives to encourage its financial advisors to steer customers into “in house” and proprietary funds that may not be right for them just to generate more fees for the firm? Or does this practice improperly (and illegally) incentivize the…