On Dec. 5, NYDFS fined National Integrity $240k for annuities. National Integrity Life Insurance Company violation on annuity contract sales. Follows NYDFS Dec. 2016 guide on insurer annuity replacements. Disclosure on Switches Violated NY Insurance Regulations 187 and 60, on replacing annuity contracts. Immediate annuity provide periodic income payments beginning in 13 months. Deferred annuity…
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DoJ $73mn 1MDB Bribery in US
On Nov. 30, DoJ issued action in 1MDB bribery of US government. Conspiracy to defraud US banks and launder funds controlled by Jho Taek Low. International conspiracy to defraud US financial institutions and launder funds. Billions of dollars were embezzled from 1Malaysia Development Berhad (1MDB). Action sought forfeit and recovery of $73mn traceable to 1MDB fraud in…
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DoJ $1.5bn Japan and US Ponzi
On Nov. 29, DoJ announced conviction for a $1.5bn Japan Ponzi. MRI investment company CEO, Edwin Fujinaga, solicited fraudulent investments. Medical collection business was located in Las Vegas, Nevada, and Tokyo, Japan. Allegeed Violations Fujinaga solicited $1bn in investments in MRI from over 10,000 Japan residents. Investors wired funds from Japan into accounts in US,…
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ASIC UBS Market Integrity Fine
On Nov. 20, ASIC announced UBS paid AUS$120,000 penalty. UBS Securities Ltd (UBS) paid AUS$120k to settle infringement notice penalty. Findings Panel believed UBS contravened ASIC Market Integrity Rules (ASX Market) 2010. Transactions relating to six on-market buy-backs conducted in 2017 were not in the ordinary course of trading/not in accordance with the clients’ instructions.…
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FINRA Fines Cadaret Suitability
On Nov. 15, FINRA fined Cadaret $800k for suitability of annuities. Cadaret, Grant & Co.,fined $800 and required to retain independent consultant. Consultant to conduct comprehensive review of adequacy of policy, procedures. Review staffing, training relating to the rule violations identified in enforcement. Supervisory Failures Failed to establish a reasonably-designed supervisory system in business areas.…
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CFTC, Utah Coin $170m Ponzi
On Nov. 16, CFTC, Utah charged dealer with $170mn metals Ponzi. Gaylen Rust, Rust Rare Coin charged for obtaining $170mn from 200 investors. Charges brought with Utah Department of Commerce, Utah's Attorney General. Alleged Violations Jan.-Aug. 2018 fund received up to $42mn for a pool supposedly trading silver. Attempted to solicit new investors in this…
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