On Nov. 2, SEC issued enforcement report on FY 2018 activities. Follows SEC Nov 2017 enforcement report on priorities and results. 2018 Core Principles Principles are to protect Main Street investor, individual accountability for action. Bar bad actors from securities markets, and send strong message of deterrence. Keeping pace with technological change, remedies to further…
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PCAOB Sanction Deloitte Mexico
On Oct. 31, PCAOB fined Deloitte partners re Mexico subsidiary. Follows audit of Prestaciones Finmart, that was a subsidiary of US firm EZCORP. EZCORP was loan provider with operations in countries including US and Mexico. Galaz, Yamazaki, Ruiz Urquiza, S.C., known as Deloitte Mexico, Ricardo Agustín García Chagoyán, José Ignacio Valle Aparicio, Rubén Eduardo Guerrero Cervera. Alleged…
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FINRA LPL $2.75mn AML Report
On Oct. 30, FINRA fined LPL on complaint-reporting and AML. LPL Financial fined for complaint-reporting and AML failures spanning three years. Violated FINRA Rules 1122, 3110, 3310, 2010, NASD Rule 3010, and the by-laws. Disclosure of Complaints Firm did not file or amend registered representative forms, to disclose complaints. LPL too narrowly interpreted the requirement,…
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OFAC Singapore Trading Korea
On Oct. 25, Treasury OFAC designated Singapore trader to DPRK. Singapore-based designated targets, laundered money in support of North Korea. Two entities and one individual, to continue implementation of existing sanctions. Basis for Designation Tan Wee Beng, Wee Tiong Ltd, and WT Marine Pte Ltd for having engaged in AML. For counterfeiting of goods or…
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UK ICO Fines Facebook £500,000
On Oct. 25, UK ICO fined Facebook for data protection failures. Follows ICO Jul. 2018 issued update on political data investigation. Fine Issued Facebook fined £500,000 (the maximum allowable under the laws which applied at the time the incidents occurred) for serious breaches of data protection law. Due to timing dealt with under Data Protection…
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NYAG Wells Cross-Sale Disclosure
On Oct. 22, NYAG fined Wells $65mn for misleading cross-sell. Wells Fargo to pay $65mn settlement for misleading investors cross-sell scandal. Follows CFPB, OCC Sep. 2016 $135mn Wells fine re secret accounts. Cross-Selling Violations Due to strict, unrealistic goals, employees engaged in fraudulent sales practices. Wells Fargo employees opened millions of fake deposit and credit…
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