On Nov. 15, FINRA fined Cadaret $800k for suitability of annuities. Cadaret, Grant & Co.,fined $800 and required to retain independent consultant. Consultant to conduct comprehensive review of adequacy of policy, procedures. Review staffing, training relating to the rule violations identified in enforcement. Supervisory Failures Failed to establish a reasonably-designed supervisory system in business areas.…
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Recent Posts by ILG
CFTC, Utah Coin $170m Ponzi
On Nov. 16, CFTC, Utah charged dealer with $170mn metals Ponzi. Gaylen Rust, Rust Rare Coin charged for obtaining $170mn from 200 investors. Charges brought with Utah Department of Commerce, Utah's Attorney General. Alleged Violations Jan.-Aug. 2018 fund received up to $42mn for a pool supposedly trading silver. Attempted to solicit new investors in this…
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CFTC $1mn Hedge Fund Ponzi
On Nov. 15, CFTC imposed $1mn settlement on hedge fund Ponzi. Charges against Kevin Whylie, Matthew Zecchini, hedge fund, Algointeractive. Alleged Violation Defendants charged with fraudulent solicitation and misappropriation of funds. Made false claims in solicitations, to current and prospective pool participants. Misrepresented experience and that all or most of participants’ funds would be invested…
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IIROC Fine TD Waterhouse Sales
On Nov. 14, IIROC fined TD Waterhouse C$140k on sales practice. TD Waterhouse admitted failing to supervise its former-broker, David Gary Durno. Durno did not address clients’ best interests, in strategy in 2 accounts for seniors. Broker made large commissions for himself and his firm but reduced client profits. Firm failed to supervise employee, contrary…
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SEC $1.5mn Insider Trading Fine
On Nov. 13, SEC levied $1.5mn fine to medical firm insider trading. Insider trading charges filed on James Mazzo CEO of Advanced Medical Optics. Alleged Violations Mazzo and Abbott Laboratories were exploring the potential acquisition of AMO. Allegedly tipped friend, former professional baseball player, Douglas DeCinces. On multiple occasions Mazzo gave DeCinces, information about the…
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ESMA Market Abuse FAQs 2018
On Nov. 12, 2018, EU ESMA issued its updated FAQs on the implementation of MAR. Included new question 7.10, under managers transactions, and specifically the non-applicability of the ban to transactions of the issuer on its own financial instruments. Whether the prohibition in MAR, art. 19(11) encompass transactions relating to own instruments even if PDMRs…
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