On Feb. 16, FINRA fined Legend Securities $200k re sale supervision.
- Office of Hearing Officers decision became final and the firm was fined $200k.
Alleged Violations
- Firm failed to supervise representative who fraudulently churned an account.
- Fraud against elderly and blind customer resulted in net losses of over $170k.
- Customer was charged a total $232k in commissions, ticket charges and fees.
- Firm identified the representative, as having need for heightened supervision.
- Did not prepare plan, at any time in three years that he was registered with it.
- Ignored the representative repeatedly effecting aggressive in-and-out trades.
- Firm failed to establish and enforce its written supervisory procedures (WSP).
