On Oct. 5, OFAC fined JPMC $5.2mn for sanctioned activities. Cited civil liability for 87 apparent violations of Cuban Assets Control Regulations. Iranian Transactions and Sanctions Regulations; and WMD Sanctions Regulations. Cuban Transactions Transactions were net settlement payments, and a very small portion appears to have been attributable to interests of airlines that were at…
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CFTC Precious Metals Fraud
On Oct. 3, CFTC charged firm $1.3mn precious metals scheme. Aaron Scott conducted his scheme through BMC Worldwide, (Blue Moon Coins). Alleged Violations Firm defrauded 130 customers with contracts of sale specifically gold and silver. Defendants lied to customers, and stole their funds, resulting in $1.3mn losses. Blue Moon did not keep an inventory of precious…
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SEC Fine Suspicious Trading
On Sep. 28, SEC charged BD for reporting suspicious trading. Brokerage COR Clearing to exit penny stock deposit business, and pay a fine. Alleged Violations From 2015- 2016, COR cleared a large amount of penny stock for customers. 193 client accounts deposited large blocks of low-priced securities, with firm. The clients then quickly sold the same…
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SEC Fine Repeat FCPA Breach
On Sep. 28, SEC fined Stryker medical $7.8mn FCPA violations. For second time Stryker medical device has been charged with FCPA failures. Alleged Violations Company violated books, records and internal accounting controls provisions. Internal accounting controls did not detect risk of improper payment in sales in India, Chin, and Kuwait, and Indian subsidiary did not…
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SEC Fine BD $1mn Cybersecurity
On Sep. 26, SEC fined Voya $1mn for client data cyber intrusion. Voya Financial Advisors (VFA) violated SEC rules on safeguards and ID theft. Safeguards per Rule 30(a) of Reg S-P; ID theft under Rule 201 of Reg S-ID. First SEC enforcement charging violations of the identity theft red flags rule. Alleged Violations Cyber intruders impersonated VFA contractors,…
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CAL INS $1mn Insurance Scam
On Sep. 25, CAL INS announced arrest of broker re false policy. Peter Muh Kim and wife Jin Kim, charged for $1mn joint life insurance scam. Three felony counts each of grand theft, and three further of insurance fraud. Peter Kim, a licensed insurance agent, allegedly sold two policies to his wife. Alleged Violations…
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