In interviews with Reuters, the Financial Industry Regulatory Authority admitted that even though investors are harmed when broker-dealers hire brokers with checkered histories, there is not much that the regulator can do to stop this practice because it is not illegal. This is undoubtedly causing even more investors to suffer…
In Kokesh v. SEC, the US Supreme Court has restricted the US Securities and Exchange Commission’s ability to pursue disgorgement after five years have passed since the fraud alleged led to illegal profits. In a unanimous decision, the nation’s highest court said that that the five-year statute of limitations must…
Merrill Lynch Pierce Fenner & Smith, a Bank of America (BAC) unit will pay Tutor Perini Corp. $37M to settle a securities case accusing the broker-dealer of selling the construction company millions of dollars of auction-rate securities (ARS) without giving it the heads up that the market was likely to…
According to Bloomberg, trading in Puerto Rico securities has gone up even after the U.S. territory filed for Title III bankruptcy protection last month. Over the last 50 days, $267.4 million of Commonwealth debt was the daily average that traded, which is more than the $195.9 million daily average from…
Two of the three ex-State Street Corp.(STT) executives whom US prosecutors have charged with bilking six clients via secret commissions on billions of dollars of trades have agreed to plead guilty. Edward Penning, a former State Street Sr. managing director, and Richard Boomgaardt, the former head of the transition management…
Former Stifel, Nicolaus Broker is Accused of Variable Annuity Violations The Financial Industry Regulatory Authority has suspended an ex-Stifel, Nicolaus (SF) broker for four months over variable annuity transactions that he purportedly inappropriately recommended to certain investors. At the time of the alleged variable annuity fraud, James Keith Cox worked…
Deborah Kelley, an ex-Sterne Agee managing director and broker, has pleaded guilty to honest-services wire fraud and securities fraud. Kelley, admitted that she gave perks to former NY state pension fund manager Navnoor Kang in return for him directing trading business toward her firm. She could be sentenced to up…
In yet another investor fraud case in which the alleged fraudsters touted the sale of tickets from the musical Hamilton, Jason Nissen is charged with wire fraud in a $70M Ponzi scam. According to prosecutors, the CEO of National Event Co. raised money by falsely claiming that he would use…
David Lerner Associates to Pay NJ Over Nontraded REIT Sales David Lerner Associates has agreed to pay a $700K penalty to resolve allegations accusing it of illegally selling nontraded real estate investment trusts in the state of New Jersey. In the consent order from the New Jersey Bureau of Securities,…
BNP Paribas will pay the New York Department of Financial Services (DFS) $350M to settle a probe into allegations that it was involved in currency rigging in the bank’s foreign exchange business. In a statement, the French bank said that it “deeply regrets” the misconduct, which took place between ’07…