Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2012
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
January 2012
Centrade Securities Corp.
AWC/2009016149901/January 2012
AWC/2009016149901/January 2012
Centrade failed to implement
a reasonably designed
AML compliance program. The firm acted in
contravention of
AML requirements and its own procedures by failing to adequately
monitor for, detect
and investigate suspicious transactions notwithstanding multiple
red flags presented
by the trading in a customer’s account. In most instances,
suspicious activity related to one or more of the red flag
categories identified in the firm’s
AML compliance procedures, including
- substantial fluctuations in the customer’s account value during the period in which the account was maintained at the firm;
- unexplained and extensive wire activity, including a large number of third-party incoming wires (some of which originated from international banks); and
- a wire transfer from the customer’s account for $39,000 sent to a country identified as a known money-laundering risk and bank-secrecy haven.
Centrade Securities Corp.: Censure; Fined $15,000 (lower fine imposed in consideration of "firm's revenues and financial resources"
Puritan Securities, Inc. later known as First Union Securities, Inc
AWC/201002087520/January 2012
AWC/201002087520/January 2012
The Firmt
failed to implement a
reasonably compliant Anti-Money Laundering Compliance Program
(AMLCP).
The firm failed
- to ensure that its registered representatives received AML training,
- to ensure that new account files contained evidence that the firm had verified clients’ identities,
- to conduct an independent test of its AMLCP, and
- to maintain its required minimum net capital while conducting a securities business.
Puritan Securities, Inc. later known as First Union Securities, Inc: Censured; Fined $15,000
Enforcement Actions
Tags
- AML
- Annual Compliance Meeting
- Borrowing
- Changes Of Address
- Checks
- Commissions
- Confidential Customer Information
- Due Diligence
- Elderly
- Electronic Communications
- Electronic Storage
- Embezzled
- Installment Plan Contracts
- Internet
- Life Settlement Contracts
- LOA
- Membership Agreement
- Money Laundering
- Mortgage
- OSJ
- Ponzi
- Private Placement
- Referral Fees
- Supervision
- Testing
- Unregistered Person
- Unregistered RRs
- Unregistered Securities
- Variable Annuity
- WSPs