The US Securities and Exchange Commission is accusing brokers Jovannie Aquino and Emil Botvinnik of fraud that allegedly cost investors about $3.6M. According to the regulator, Botvinnik, who is a Florida resident and is no longer a registered representative, and Aquino who is a New York resident, recommended frequent, short-term…
Lincoln Investment Planning to Pay Clients For Not Giving Discounts on Mutual Fund Shares FINRA is ordering broker-dealer Lincoln Investment Planning to pay $1.37M to clients to whom it did not give the discounts they were entitled to when they purchased mutual fund A shares between 1/2011 and 6/2018. The…
SEC Awards Whistleblower $4.1M A company insider who notified the US Securities Exchange Commission about a “widespread, multi-year securities law violation” involving the employer, is getting a $4.1M whistleblower award. The individual, who is a foreign national employed abroad, also provided information and help during the regulator’s probe. Further details…
Craig Scott Capital, LLC Loses FINRA Membership After Its Representatives Are Accused of Excessive Trading The Financial Industry Regulatory Authority has expelled Craig Scott Capital, LLC over finding that three of the firm’s registered representatives allegedly engaged in excessive trading in the accounts of customers. The self-regulatory organization said that…
FINRA Fines Ex-Morgan Stanley Broker, Issues 15-Day Suspension The Financial Industry Regulatory Authority has fined an ex-Morgan Stanley (MS) broker $10K and ordered him to serve a 15-day suspension after he allegedly tried to resolve a client’s complaint without the firm’s consent. The regulator is charging Lewis H. Robinson, who…
In a settlement with the Financial Industry Regulatory Authority, a number of Cetera Financial Group brokerage firms have agreed to collectively pay $3.3M for not properly supervising whether mutual fund sales charge waivers were applied correctly clients at charitable organizations and in retirement plans. The firms that have settled include…
Massachusetts Secretary of the Commonwealth William Galvin is probing whether there are brokers who are getting paid kickbacks by exchanges in return for investor trades. The investigation comes in the wake of an op-ed article published in The New York Times last month alleging that there are financial representatives who…
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…
Ex-Jefferies Trader Will Go to Prison for Mortgage-Backed Securities Fraud After All Jesse Litvak, the ex-Jefferies (JEF) managing director, has once again been sentenced to two years in prison. Litvak was found guilty of mortgage-backed securities fraud in 2014 and sentenced to two years behind bars. The conviction at the…
Ex-Merrill Lynch Broker Pleads Guilty to Bank Fraud Jeffrey Kluge, a longtime Merrill Lynch broker, has pleaded guilty to defrauding two banks of more than $8.7M. His bank fraud ran from 2001 through November 2016. Kluge’s plea agreement said that he committed bank fraud by fabricating account statements under Merrill…