On Oct. 24, FINRA proposed rules on post-office staff conflicts. To adopt Rule 9910 post-employment conflict restrictions; nonpublic information. Ban Ex-Employee Advocacy Prohibit former officers from communication or appearance at FINRA, for a year. Any ex-employee banned from advocating FINRA at any time in matter involving specific party with whom personally or substantially involved during employment.…
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About: ILG
Recent Posts by ILG
NYAG Wells Cross-Sale Disclosure
On Oct. 22, NYAG fined Wells $65mn for misleading cross-sell. Wells Fargo to pay $65mn settlement for misleading investors cross-sell scandal. Follows CFPB, OCC Sep. 2016 $135mn Wells fine re secret accounts. Cross-Selling Violations Due to strict, unrealistic goals, employees engaged in fraudulent sales practices. Wells Fargo employees opened millions of fake deposit and credit…
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HK SFC Public Fraud Reporting
On Oct. 18, HK SFC issued web page to report corporate fraud. New features on SFC website to encourage public reporting of offences, suspects. Fraud, Misconduct Form located on new reporting corporate fraud and market misconduct webpage. To make easier for public to report suspected corporate fraud, market misconduct. Webpage gives non-exhaustive list of activities to report…
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CFTC First Bitcoin Enforcement
On Oct. 18, 2018, CFTC said court ordered CEO and firm pay $2.5mn for the Ponzi. Gelfman was liable as controlling person for company, which was itself liable as the principal for the violation of Gelfman and company officers, agents, and employees. Gelfman and GBI to pay $554k and $492k to customers,1.8mn and $177k civil…
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SEC IA Family Friends Fraud
On Oct. 17, SEC charged IA with stealing from family and friends. Bruce Fixelle solicited investments from friends met at a community organization. Investment adviser history of defrauding, of close friends and community members. Alleged Violations Claimed to friends, he would invest their money in initial and secondary offerings. After investing in offerings, would then…
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FINRA Fine World Equity VA Sales
On Oct. 15, FINRA settled with World Equity for $480k re VA sales. Firm was fined $100k and ordered to pay $380k restitution for customers. Did not ensure representatives, principals complied with FINRA Rule 2330. Review of VA Sales While firm had registered principals responsible for review and approval of variable annuity purchase and exchange,…
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