{"id":5925,"date":"2016-02-06T00:00:00","date_gmt":"2016-02-06T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/02\/sec_news_brokerage_firm_fined"},"modified":"2016-02-06T00:00:00","modified_gmt":"2016-02-06T06:00:00","slug":"sec-news-brokerage-firm-fined","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-news-brokerage-firm-fined\/","title":{"rendered":"SEC News: Brokerage Firm Fined $1M to Resolve Anti-Money Laundering Violations, Ocwen Financial to Pay $2M Over Misstated Financial Results, and Software Company is Accused of FCPA Violations"},"content":{"rendered":"

E.S. Financial Accused of Anti-Money Laundering Violations<\/strong>
\nThe Securities and Exchange Commission is charging E.S. Financial Services, now called Brickell Global Markets, with violating anti-money laundering rules. To resolve the charges, the Miami-based firm will pay a $1M penalty.<\/p>\n

According to the regulator, on two occasions E.S. Financial did not provide the needed books and records to identify foreign costumers that they were soliciting and providing with investment advice. U.S. law mandates that financial institutions keep a customer identification program (CIP) that is adequate enough to make sure that the institutions know who their customers are so that don\u2019t inadvertently get involved in terrorist financing or money laundering. <\/p>\n

An SEC probe found that the firm\u2019s CIP did not procure and keep up documentation to confirm the identities of certain foreign customers who used a brokerage account set up by a Central Bank affiliate. E.S. Financial has consented to hire an independent monitor to assess its CIP policies and anti-money laundering procedures, policies, and practices.<\/p>\n

\nOcwen Settles SEC Charges for $2M<\/strong>
\nOcwen Financial Corp. will settle civil charges accusing the firm of misstating financial results via the use of an undisclosed, flawed methodology to value complex mortgage assets. The SEC found that Ocwen inaccurately disclosed to investors that assets were valued independently at fair value under GAAP when the firm had actually used valuation conducted by a related party that bought the rights to service certain mortgages that were still a financial liability in the company\u2019s accounting. <\/p>\n

The SEC that Ocwen\u2019s audit committee did not examine the methodology with an outside auditor or company management and the valuation that occurred strayed from fair value measures. Because of this, Ocwen misstated its net income for four quarters. <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

E.S. Financial Accused of Anti-Money Laundering Violations The Securities and Exchange Commission is charging E.S. Financial Services, now called Brickell Global Markets, with violating anti-money laundering rules. To resolve the charges, the Miami-based firm will pay a $1M penalty. According to the regulator, on two occasions E.S. Financial did not provide the needed books and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3795,3761],"tags":[3592],"class_list":["post-5925","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","tag-mortgage-bonds"],"yoast_head":"\nSEC News: Brokerage Firm Fined $1M to Resolve Anti-Money Laundering Violations, Ocwen Financial to Pay $2M Over Misstated Financial Results, and Software Company is Accused of FCPA Violations — Investor Lawyers Blog — February 6, 2016<\/title>\n<meta name=\"description\" content=\"E.S. Financial Accused of Anti-Money Laundering Violations The Securities and Exchange Commission is charging E.S. 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