On Oct. 23, 2017 DoJ announced guilty verdict for Johnson in E.D.N.Y jury trial conviction. One count conspiracy to commit wire fraud, eight of wire fraud, sentencing not scheduled. For his role in fraudulent FX front-running scheme benefiting bank, defrauding its clients. On Oct. 23, 2017, FDIC OIG also announced a guilty verdict for Johnson,…
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U.S. MA SD IA Conflict Disclosures
On 19 October, MA SD charged advisor for failure to disclose conflicts. Charged N. Moser and Moser Capital Management on fraud, dishonest conduct. Violated MA law, fiduciary duty, providing misleading information, and omission. Sought to cease and desist, withdraw IA registration, prohibit advisory services. Allegations From 2015, Moser and his company have induced investors by false…
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Hong Kong SFC Moody’s China Action
On 17 October 2017, court dismissed Moody’s leave to appeal to the final court of appeal. As Moody’s misconduct can be established on basis that preparation and publication of the Report, formed part and parcel of the carrying on of the business of credit ratings. Background: On 5 April, HK SFC fined Moody's $11mn for…
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U.S. FINRA W. Fargo $3.4mn ETPs
On 16 October, FINRA ordered Wells Fargo to pay $3.4mn for ETP sales. To Wells Fargo Clearing Services LLC; Wells Fargo Advisors Financial Network LLC. Wells Fargo associates made unsuitable recommendations of volatility-linked ETPs. Related supervisory failures, $3.4mn restitution will be paid to affected customers. Allegations Between July 2010 and May 2012, some registered representatives…
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Hong Kong SFC Bans Investment Consultant for Code of Conduct
On 11 October, the SFC banned Xu Tao for four months for code of conduct. Mr Xu Tao, a former investment consultant of China International Capital Corporation Hong Kong Securities Limited (CICC), banned for four months from 11 October 2017 to 10 February 201 Xu used his mobile phone and WeChat messaging application to accept…
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U.S. SEC Charged Michael Scronic with Fraud
On 5 October, SEC charged Scronic for IA Ponzi-like scheme. SEC charged Scronic for alleged lying to retail investors. Ponzi-like scheme of Falsifying Options Value. 42 friends and acquaintances lost over $21 Million. Scronic alleged scheme operated between 2010 -2017. SEC’s NY ARD Mehraban said, “Investors should be wary of complex, hard to understand investment…
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