On 29 September, SDNY charged dealer with NY public pension fund bribery. Deborah Kelley, was ex-MD of institutional fixed income sales at a broker dealer. Bribery Kelley participated in scheme involving the NY State Common Retirement Fund. Bribed official with control over investment of $50bn State pension fund assets. Directing business to her firm,…
Read more
U.S. SEC Fine Brokers Churning
On 28 September, SEC charged dealers with unsuitable recommendations. Exam of Alexander Capital, detected potential misconduct among certain brokers. Complaint vs. William Gennity and Rocco Roveccio, order against Laurence Torres. Defendants recommendations caused loss to customers, commissions to brokers. Defendants churned customer accounts, unauthorized trades, and hid information. Customer losses of $683k while defendants received approximately…
Read more
U.S. FINRA Fines Morgan Stanley UITs
FINRA settles with Morgan Stanley for $13mn re UITs. Morgan Stanley charged re failure to supervise sale of unit investment trusts UIT. Suitability Concerns UIT is investment company offering portfolio units terminating on a specific date. Impose deferred sales charge and a creation and development fee, can be 3.95%. A representative who repeatedly recommends customer…
Read more
U.S. OFAC Fine HK Jewel Export
On 26 September, OFAC fined exporter for jewelry sales to HK person. Settlement agreement of $344,800 with Richemont North America, DBA. Cartier. Firm violated rules when exporting jewelry shipments to Shuen Wai Holding HK. Shuen Wai is an entity on OFAC list of designated nationals and blocked persons. OFAC determined Richemont did not voluntarily self-disclose…
Read more
H.K. SFC Bans For Life
On 25 September, the SFC banned a former account executive for conducting unauthorized transactions. Banned for life, Mr Shum Kam Ming, a former account executive of Sincere Securities Limited (Sincere Securities), conducting unauthorized transactions in a client’s account. The disciplinary action follows an SFC investigation which found that between March 2014 and May 2015. Shum…
Read more
U.S. N. Korea Foreign Bank Use
On 21 September, Treasury issued executive order to cut funding to N Korea. Followed 11 September 2017, UN Security Council sanctions on N. Korea. Treasury Statement Said despite UN resolution, North Korean had continued to threaten the world. US Authorities target enablers of regime's economic activity, wherever located. Stated no bank in any country should…
Read more