On Nov. 15, CFTC imposed $1mn settlement on hedge fund Ponzi. Charges against Kevin Whylie, Matthew Zecchini, hedge fund, Algointeractive. Alleged Violation Defendants charged with fraudulent solicitation and misappropriation of funds. Made false claims in solicitations, to current and prospective pool participants. Misrepresented experience and that all or most of participants’ funds would be invested…
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IIROC Fine TD Waterhouse Sales
On Nov. 14, IIROC fined TD Waterhouse C$140k on sales practice. TD Waterhouse admitted failing to supervise its former-broker, David Gary Durno. Durno did not address clients’ best interests, in strategy in 2 accounts for seniors. Broker made large commissions for himself and his firm but reduced client profits. Firm failed to supervise employee, contrary…
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SEC $1.5mn Insider Trading Fine
On Nov. 13, SEC levied $1.5mn fine to medical firm insider trading. Insider trading charges filed on James Mazzo CEO of Advanced Medical Optics. Alleged Violations Mazzo and Abbott Laboratories were exploring the potential acquisition of AMO. Allegedly tipped friend, former professional baseball player, Douglas DeCinces. On multiple occasions Mazzo gave DeCinces, information about the…
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OFAC Ukraine, Crimea Sanction
On Nov. 8, Treasury OFAC named Ukraine occupation supporters. Sanctioned three individuals and nine entities, under Ukraine-related authorities. Follows designation relate to territories forcibly occupied or controlled by Russia. Ukraine, including Crimea and areas of Donetsk and Luhansk in eastern Ukraine. Individuals Andriy Volodymyrovych Sushko role in directing of serious human rights abuses. Abducted a Crimean…
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SEC $12mn Mislead Dark Pool
On Nov. 7, SEC fined ITG $12mn for misleading about dark pool. Charged ITG Inc. and its affiliate AlterNet for misleading dark pool subscribers. Did not protect trading information and sometimes used in an attempt to grow. Alleged Violations Firm made misstatements and omissions, about operation of their pool, POSIT. ITG improperly disclosed confidential dark pool…
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CSA BC $47mn Insurance Fraud
On Nov. 6, CSA BC alleged $47mn fraud by insurance officers. Insurance group leaders committed fraud in selling unsecured loan agreements. Aik Guan Lim and Scott Low are directors and owners of FS Financial Strategies and related companies in FS insurance group, dishonestly raised over $47mn. Alleged Violations Induced hundreds into buying the loans without disclosing…
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