"FINRA Board Of Governors Fails To Confront Goldman Sachs $215 Million Gender Discrimination Settlement" (BrokeAndBroker.com Blog / May 10, 2023)
https://www.brokeandbroker.com/7035/finra-goldman-sachs/

“A Call for Boycott: FINRA Board of Governors’ Cowardly Silence Becomes Thunderous” (BrokeAndBroker.com Blog / May 1, 2023)
https://www.brokeandbroker.com/7021/finra-board-ruemmler-epstein/  

Denton County Financial Advisor Guilty of Federal Violations (DOJ Release)
https://www.justice.gov/usao-edtx/pr/denton-county-financial-advisor-guilty-federal-violations

-and-

Agencies issue final guidance on third-party risk management (Joint Press Release: Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency)
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230606a.htm
As set forth in part in the Joint Release:

The final guidance describes principles and considerations for banking organizations' risk management of third-party relationships. The final guidance covers risk management practices for the stages in the life cycle of third-party relationships: planning, due diligence and third-party selection, contract negotiation, ongoing monitoring, and termination.

The final guidance includes illustrative examples to help banking organizations, particularly community banks, align their risk management practices with the nature and risk profile of their third-party relationships. The agencies plan to engage with community banks immediately and develop additional resources in the near future to assist them in managing relevant third-party risks.

The final guidance replaces each agency's existing general third-party guidance and promotes consistency in the agencies' supervisory approaches toward third-party risk management. The final guidance reflects streamlined language and improved clarity based on the agencies' consideration of public comments on the proposed guidance released in July 2021.

OneTaste sexual wellness executives charged by U.S. with forced labor (Reuters)
https://www.reuters.com/business/onetaste-sexual-wellness-executives-charged-by-us-with-forced-labor-2023-06-06/
Y'know, there are times when a headline is so provocative and so stunning and you're reading it but not quite sure that you read it right, so you read it again, and, well, yeah, that's what it says it says but, geez, like what the hell is this really about. 

SEC Seeks Emergency Relief to Ensure Binance.US Customers’ Assets are Protected (SEC Release)
https://www.sec.gov/news/press-release/2023-103
In the United States District Court for the District of Columbia the SEC filed for a:

temporary restraining order freezing assets, directing defendants to repatriate assets held for the benefit of customers of the Binance.US crypto trading platform, and seeking other emergency relief against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and their founder, Changpeng Zhao, to ensure that Binance.US customers’ assets are protected and remain in the United States through the resolution of the SEC’s pending litigation of this matter.

As part of the SEC’s emergency motion, the SEC seeks (1) an order to show cause why a preliminary injunction should not be granted as to the defendants; (2) an order freezing the assets of BAM Management; (3) an order directing the defendants to repatriate assets held for the benefit of BAM Trading's or BAM Management’s (together “BAM”) customers; (4) an order for other relief concerning the custody and control of BAM customers’ assets; (5) an order prohibiting the destruction of records by the defendants; (6) an order requiring sworn accountings of certain assets from the defendants; (7) an order authorizing expedited discovery from the defendants; and (8) an order granting alternate means of service.

SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency / Coinbase also charged for the unregistered offer and sale of securities in connection with its staking-as-a-service program (SEC Release)
https://www.sec.gov/news/press-release/2023-102
In the United States District Court for the Southern District of New York, the SEC filed a Complaint alleging that Coinbase, Inc. and its holding company Coinbase Global Inc. ("CGI") violated certain registration provisions of the Securities Exchange Act and that Coinbase violated the securities offering registration provisions of the Securities Act of 1933
https://www.sec.gov/litigation/complaints/2023/comp-pr2023-102.pdf. As alleged in part in the SEC Release:

Unregistered Exchange, Broker, and Clearing Agency

According to the SEC’s complaint, since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having registered any of those functions with the Commission as required by law. Through these unregistered services, Coinbase allegedly:

• • Provides a marketplace and brings together the orders for securities of multiple buyers and sellers using established, non-discretionary methods under which such orders interact;
  • Engages in the business of effecting securities transactions for the accounts of Coinbase customers; and
  • Provides facilities for comparison of data respecting the terms of settlement of crypto asset securities transactions, serves as an intermediary in settling transactions in crypto asset securities by Coinbase customers, and acts as a securities depository.

As alleged in the SEC’s complaint, Coinbase’s failure to register has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others.

The SEC’s complaint also alleges that Coinbase’s holding company, Coinbase Global Inc. (CGI), is a control person of Coinbase and is thus also liable for certain of Coinbase’s violations.

Unregistered Offer and Sale of Securities in Connection with Staking-as-a-Service Program

The SEC alleges that, since 2019, Coinbase has been engaging in an unregistered securities offering through its staking-as-a-service program, which allows customers to earn profits from the “proof of stake” mechanisms of certain blockchains and Coinbase’s efforts. Through this staking program, Coinbase allegedly pools each type of customers’ stakeable crypto assets, stakes the pool to perform blockchain transaction validation services, and provides a portion of the rewards generated from this work to its customers whose assets were part of the pool. Coinbase failed to register its offers and sales of this staking program as required by law.

FINRA Censures and Fines UnionBanc Investment Services, LLC for Discovery Abuses During Arbitration by Former Rep
In the Matter of UnionBanc Investment Services, LLC, Respondent (FINRA AWC 2022073798101)
https://www.finra.org/sites/default/files/fda_documents/2022073798101
%20UnionBanc%20Investment%20Services%2C%20LLC%20CRD
%2014455%20AWC%20lp.pdf
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, UnionBanc Investment Services, LLC submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that UnionBanc Investment Services, LLC. has been a FINRA member firm since 1984 with 349 registered persons at 201 branches. In accordance with the terms of the AWC, FINRA imposed upon UnionBanc a Censure and $75,000 fine. As alleged in part in the "Overview" portion of the AWC:

From July 2020 to May 2021, UBIS failed to comply with its discovery obligations in an arbitration proceeding brought in FINRA's Dispute Resolution forum by a former registered representative. As a result, UBIS violated FINRA Rule 2010.

FINRA Fines and Suspends Rep for Executing Trades Without Obtaining Prior Authorization or Consent of Customers
In the Matter of Jeremy Jefferson Jacobson, Respondent (FINRA AWC 2021071954502)
https://www.finra.org/sites/default/files/fda_documents/2021071954502
%20Jeremy%20Jefferson%20Jacobson%20CRD%204437801%20AWC%20lp.pdf
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Jeremy Jefferson Jacobson submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that Jeremy Jefferson Jacobson entered the industry in 2001 and by 2013, he was registered with LPL Financial LLC. In accordance with the terms of the AWC, FINRA imposed upon Jacobson a $5,000 fine, $7,887 in disgorgement plus interest, and a three-month suspension from associating with any FINRA member in all capacities. As alleged in part in the AWC:

From February through May 2021, Jacobson executed twenty-four trades with a total principal value of approximately $1.1 million in the accounts of LPL customers A, B, and C, without first discussing with, and obtaining authorization or consent for the trades from, the customers.

In February 2021, Jacobson executed two trades in customer A's LPL account with a total principal value of approximately $85,700. In February 2021 through May 2021, Jacobson executed twenty trades in customer B's account with a total principal value of approximately $1.08 million. In April 2021, Jacobson executed two trades in customer C's LPL account with a total principal value of approximately $6,500. Jacobson received $7,887 in total commissions for the twenty-four trades. Jacobson did not have authorization or consent from the customers to place the twenty-four trades.

Therefore, Jacobson violated FINRA Rule 2010. 

Because banks were reluctant to handle cryptocurrency transactions, in reality, the Crypto Companies could not access legitimate financial institutions.  Instead, the Crypto Companies lied to banks in order to open accounts that were used to process cryptocurrency transactions without the banks’ knowledge. FOWLER opened dozens of such accounts in the United States and around the world.  He did not disclose GTS’s involvement with the Crypto Companies and the fact that it was operating as a payment processor for hundreds of millions of dollars in cryptocurrency transactions.  FOWLER also directed other individuals to include false information on wire transfer instructions to further deceive banks about the nature of GTS’s business.  In less than 10 months, FOWLER processed approximately $750 million in cryptocurrency transactions in various currencies. At no point were FOWLER, GTS, nor any of the Crypto Companies ever licensed as a money transmitting business in the United States, as required by federal law.      

Additionally, in 2018, FOWLER defrauded the AAF in connection with his acquisition of a significant ownership stake in the league. In the course of negotiating his investment in the AAF, FOWLER falsely claimed personal ownership of GTS funds that, in fact, belonged to clients of FOWLER’s illegal money transmission service established in support of the Crypto Companies.  As he did when opening bank accounts, FOWLER lied to AAF executives, telling them that the funds in the GTS bank accounts derived from real estate investments as well as government contracts and that the tens of millions of dollars in the GTS accounts were liquid assets he could use to invest in the AAF.  FOWLER did not disclose his involvement with the Crypto Companies.  Moreover, although FOWLER experienced account closures and government seizure of GTS funds in the month leading up to his investment in the AAF, FOWLER did not disclose those facts to the AAF. FOWLER acquired a significant investment stake in the AAF in November 2018 yet was unable to fund that investment.  Based, in part, on FOWLER’s lies, the AAF declared bankruptcy in about April 2019, ending the season and dashing the hopes of FOWLER’s victims.

SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao / Charges include operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities. (SEC Release)
https://www.sec.gov/news/press-release/2023-101
In the United States District Court for the District of Columbia, the SEC filed a Complaint charging Binance Holdings Ltd. (“Binance”); its U.S.-based affiliate BAM Trading Services Inc. (“BAM Trading”); BAM Management US Holdings, and founder, Changpeng Zhao. 
https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-101.pdf
As alleged in part in the SEC Release:

UNREGISTERED EXCHANGE, BROKER, AND CLEARING AGENCY

The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, alleges that, since at least July 2017, Binance.com and Binance.US, while controlled by Zhao, operated as exchanges, brokers, dealers, and clearing agencies and earned at least $11.6 billion in revenue from, among other things, transaction fees from U.S. customers. The SEC’s complaint alleges that (1) with respect to Binance.com, Binance should have registered as an exchange, broker-dealer, and clearing agency; (2) with respect to Binance.US, Binance and BAM Trading should have registered as an exchange and as clearing agencies; and (3) BAM Trading should have registered as a broker-dealer. The SEC also alleges that Zhao is liable as a control person for Binance’s and BAM Trading’s respective registration violations.

UNREGISTERED OFFER AND SALE OF CRYPTO ASSETS

The SEC charged Binance for the unregistered offers and sales of BNB, BUSD, and crypto-lending products known as “Simple Earn” and “BNB Vault.” Further, the SEC charged BAM Trading with the unregistered offer and sale of Binance.US’ staking-as-a-service program. The complaint also notes that Binance secretly has control over assets staked by U.S. customers in BAM’s staking program.

FAILURE TO RESTRICT U.S. INVESTORS FROM ACCESSING BINANCE.COM

The SEC’s complaint alleges that Zhao and Binance created BAM Management and BAM Trading in September 2019 as part of an elaborate scheme to evade U.S. federal securities laws by claiming that BAM Trading operated the Binance.US platform independently and that U.S. customers were not able to use the Binance.com platform. The complaint alleges that, in reality, Zhao and Binance maintained substantial involvement and control of the U.S. entity and that, behind the scenes, Zhao directed Binance to allow and conceal many high-value U.S. customers’ continued access to Binance.com. In one instance, the Binance chief compliance officer messaged a colleague that, “[w]e are operating as a fking unlicensed securities exchange in the USA bro.”

MISLEADING INVESTORS

According to the SEC’s complaint, BAM Trading and BAM Management misled Binance.US customers and equity investors concerning the existence and adequacy of market surveillance and controls to detect and prevent manipulative trading on the Binance.US platform’s crypto asset trading volumes. The complaint further alleges that the strategic and targeted wash trading largely perpetrated by the Binance.US platform’s primary undisclosed “market making” trading firm Sigma Chain, also owned by Zhao, demonstrates the falsity of statements BAM Trading made about its market surveillance and controls.

Federal Court Orders Washington Rancher to Pay $1 Million Penalty for Phantom Cattle Scheme, Position Limit Violations (CFTC Release)
https://www.cftc.gov/PressRoom/PressReleases/8711-23
The United States District Court for the Eastern District of Washington issued an Order granting a permanent injunction against Cody Easterday https://www.cftc.gov/media/8681/enfcodyeasterday060523/download
and requiring him to pay a $1 million civil monetary penalty and permanently enjoining him from further violating cited regulations; and also permanently prohibits Easterday from trading on or subject to the rules of any CFTC-registered entity and from engaging in any activities requiring CFTC registration. Previously, in a parallel criminal action, Easterday was sentenced to 11 years in prison and ordered to pay $244 million in restitution. As alleged in part in the CFTC Release:

[F]rom approximately October 2016 to November 2020, Easterday caused Easterday Ranches to submit false invoices and reimbursement requests relating to more than 200,000 head of cattle that it never purchased or raised on the processor’s behalf. Through the use of fraudulent invoices and reimbursement requests, Easterday Ranches received more than $233 million to which it was not entitled.

In addition, the order finds that Easterday caused Easterday Ranches to report false or misleading information concerning its cattle inventory, purchases, and sales to the Chicago Mercantile Exchange in at least two hedge exemption applications seeking permission to exceed the exchange’s position limits. These false statements to the exchange were made in 2017 and 2018 to avoid disciplinary actions and scrutiny when Easterday Ranches exceeded exchange-based position limits in the live cattle and feeder cattle futures markets. Because they were based on false or misleading information, the hedge exemptions were invalid. As a result, Easterday Ranches violated exchange-set position limit violations on at least two occasions.

FINRA Fines and Suspends Rep for Willful Failure to Timely Disclose Felony Charge
In the Matter of Adam C. Ellison, Respondent (FINRA AWC 2022074931701)
https://www.finra.org/sites/default/files/fda_documents/2022074931701
%20Adam%20C.%20Ellison%20CRD%206073346%20AWC%20lp.pdf
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Adam C. Ellison submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that Adam C. Ellison was first registered in 2012 with Ameriprise Financial Services, LLC. In accordance with the terms of the AWC, FINRA imposed upon Ellison a $5,000 fine and a three-month suspension from associating with any FINRA member in all capacities. The AWC includes this statement:

Respondent understands that this settlement includes a finding that he willfully omitted to state a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA’s By-Laws, this omission makes him subject to a statutory disqualification with respect to association with amember.

As alleged in part in the AWC:

On October 20, 2021, while Ellison was associated with Ameriprise, the District Attorney of the County of Nevada (California) filed with the California Superior Court a felony complaint against Ellison. Ellison became aware of the felony charge by November 2021, and was required to amend his Form U4 within 30 days to disclose the charge. However, Ellison did not disclose the felony charge on his Form U4 until March 15, 2022.

Therefore, Ellison willfully failed to timely disclose a felony charge in violation of Article V, Section 2(c) of FINRA’s By-Laws, and FINRA Rules 1122 and 2010.