On Jun. 29, SEC charged broker with failure to protect customers. Alexander Capital and 2 managers failed to supervise 3 brokers for client fraud. Alleged Violations Managers Philip Noto II, Barry Eisenberg, ignored red flags on excessive trading. Noto had failied to supervise two brokers and Eisenberg failed to supervise one. Did not reasonably oversee William…
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CA INS $1.6mn Elder Fraud
On Jun. 22, CA INS acted on insurance agent for elderly fraud. Mark Malatesta was charged in Mar. 2018 and pleaded guilty to 23 felony counts. Department of Insurance detectives arrested, in $1.6mn fraud scheme of elderly. Alleged Violations Falsified information on annuity applications, made $135k in illegal commissions. Convinced senior victims to terminate investment,…
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UK ICO Fine BT Spam Emails
On Jun. 20, UK ICO fined BT £77k for sending mass spam emails. BT sent five million nuisance emails to customers without consent of customers. Breached reg 22 of Privacy and Electronic Communications Regulations (2003). Alleged Violations Between Dec. 2015 and Nov. 2016, sent emails promoting three charity causes. Emails for Giving Tuesday and Stand…
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SEC Shuts $102mn Ponzi Scheme
On Jun. 19, SEC shut-down $102mn a nationwide Ponzi scheme. Perry Santillo, Christopher Parris, Paul LaRocco, John Piccarreto, Thomas Brenner. Companies: First National Solution, United RL Capital Services, Percipience Global. Fund Raising Fraudulently raised more than $102mn, from 637 investors across US since 2011. Accused of cheating 600 investors using securities sales in issuers they…
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FINRA Fine VA Sales Suitability
On Jun. 15, FINRA fined Park Avenue Securities $300k re annuities. Failed to address suitability for sales of different variable annuity share classes. No surveillance to see if representatives had potentially inappropriate VA rates. Did not provide training to representatives to sell on the various share classes. Did not establish, maintain and enforce, a supervisory…
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CBOI Fines IA for Privacy, AML
On Jun. 15, CBOI fined I/A €443k for exposure to cyber-fraud. Appian Asset Management breached client asset, AML, and fitness, probity rules. Alleged Violations The firm’s historic regulatory failures left it exposed to cyber-fraud by third party. Acting on instructions of fraudster impersonating client, it facilitated transactions. Over two-month period no one at Appian…
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