On Jul. 25, 2019, CFTC settled with Edmonds and other former trader at different bank accused in conspiracy, Corey Flaum, both entered into formal cooperation agreements. Both admitted to spoofing and manipulative conduct in futures markets, requires cease and desist from CEA violations on manipulation, spoofing, to determine sanctions.
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OSC $1.8mn Best Execution Penalty
On Jul. 19, OSC announced settlement with Caldwell investment. OSC alleged Caldwell violated best execution obligations in equity and bond trades. Settlement Terms Caldwell ordered to pay $1.8mn penalty, half on Jul. 19, 2019 and rest in Apr. 2019. It must also reimburse OSC $250k for its investigation into its compliance failures. Firm will be…
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CAL INS Advisor $1mn Laundering
On Jul. 18, CAL INS charged financial advisor money laundering. Long Beach financial advisor Tom Fallon sentenced to over 10 years in state prison, must pay nearly $1mn on 25 criminal counts of money laundering and grand theft. Bases for Conviction Found Fallon convinced victims to deposit workers’ compensation settlement checks in workers’ compensation Medicare set…
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SEC Microcap Pump Dump Scheme
On Jul. 18, SEC charged two in fraud scheme targeting elderly. SEC charged Garrett M. O'Rourke of FL, and Michael J. Black of MD in microcap pump and dump scheme targeting elderly retail investors, SEC also obtained asset freezes. Fraud Scheme From 2016 to 2018, defendants used high pressure promotional campaigns to sell the stock…
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LAT FCMC Fined Rigensis Bank
On 15 July 2019 , LAT FCMC fined Rigensis Bank €1mn, issued warning. FCMC fined Rigensis Bank AS €1mn, imposed legal obligations, warned board member. Rigensis infringed AML/CFT rules for internal controls and customer risk-related issues. Violations Key controls related to customer due diligence, transaction monitoring found deficient. Identifying beneficial owner, customers' source of funds…
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SEC Charges Advisor With Fraud
On Jul. 1, SEC charged advisor with defrauding retail customers. Fieldstone Financial Management Group and principal Kristofor Behn, defrauded retail clients by failing to disclose conflicts of interest on their recommendations. Charges 2014-2016, approximately 40 retail clients of Behn and Fieldstone invested over $7mn in Aequitas securities, who were subject of a previous enforcement action.…
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