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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BaFin Deutsche AML Order
On Sep. 24, BaFin ordered Deutsche Bank to do more on AML/CTF. Announced order re measures to prevent money laundering and terrorist financing. Followed Deusche Bank AML failings, US/UK fines. Order Order was made Sep. 21, 2018 under money laundering act (GwG), section 51(2). In the order made by BaFin, it formally required that Deutsche…
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CFTC Mizuho Fine for Spoofing
On Sep. 21, CFTC fined Mizuho $250k for futures spoofing. Mizuho Bank Ltd settled CFTC charges, for engaging multiple acts of spoofing. Alleged Violations A trader engaged in spoofing on CME, CBOT in US Treasury, Eurodollar futures. Engaged in activity through trader, who accessed markets via Singapore office. Trader placed large buy and sell orders via…
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CFTC Spoofing in Commodities
On Sep. 20, CFTC fined Geneva $1.5mn for commodity spoofing. Geneva Trading USA charged with disruptive practices, via three employees. Alleged Violations Order found all three unidentified traders used the same pattern of spoofing. Manually placed smaller orders on one side of market at or near best prices, while placing larger order or series of…
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FINRA Fine Conflict of Interest
On Sep. 17, FINRA fined Cetera re employee outside business. Settlement with Cetera Financial, in which firm was censured and fined $200k. Alleged Violations Firm failed to enforce system to monitor employee outside business activities. A representative disclosed power-of-attorney of two senior customer accounts. However, the firm did not review, evaluate or respond to the…
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