On Feb. 18, HK SFC fined Guosen securities $15mn for AML breach. Guosen Securities (HK) broker failed to comply with AML/CFT rules, in handling third party fund deposits, processed 10,000 third-party deposits for $5bn total. Allegations Clients received third-party deposits that were unequal to their financial profiles. Third-party deposits withdrawn soon after funds receipt, without…
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FINRA Fraudulent Phishing Email
On Feb. 13, FINRA warned new phishing email targeting firms. Brokers reported receiving suspicious emails targeting compliance personnel. Phishing Email The email appears to be from legitimate credit union trying to notify the firm about potential money laundering involving purported client of the brokerage. Recipient is directed to open attachment —that may contain virus or…
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ASIC Deutsche Trader False Entry
On Feb. 12, ASIC issued sentence for DB trader false entries. Court sentenced DB futures trader, Andrew Donaldson, to 18 months in prison. Allegations Donaldson pled guilty to falsifying internal financial records and system entries. While working as a FX, options and futures trader, with Deutsche Bank Sydney. Related to his trading in financial products,…
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Nasdaq Stockholm Cyxone Fine
On Feb. 8, Nasdaq Stockholm fined company inside information. Cyxone AB breached Nasdaq First North Regulation 4.1, on the disclosure of inside information prior to press release by Cyzone's President during speech. Company ordered to pay a fine of two annual fees corresponding to SEK 200k.
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CFTC Fine for Metals Spoofing
On Feb. 7, CFTC fined precious metals trader $100k for fraud. Andre Flotron, ex-UBS AG precious metals trader engaged in spoofing scheme. Allegations From 2008 through Nov. 2013, Flotron placed large orders in precious metals futures markets with the intent to cancel the orders before they are executed. Flotron intended to send market participants a…
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UK FCA Fines IPO Fund Manager
On Feb. 5, UK FCA fined fund manager £32k re IPO and placing. Paul Stephany was charged for his conduct in relation to an IPO and a placing. Allegations Twice submitted orders as part of a book-build for shares on public exchanges. Prior to closing of the new order books he contacted other firm fund…
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