FINRA Complaints for week ending January 9, 2015
Monday, January 5, 2015
National Bank of Canada Financial, Inc. was fined $20,000 for failing to implement a supervisory system in order to review incoming and outgoing emails of its brokers. Specifically, National Bank of Canada Financial, Inc. dialed to include three domain names and all Blackberry Pin-to-Pin communications in its que for electronic information to be reviewed. As a result, National Bank of Canada Financial, Inc. failed to review at least 500,000 emailed from the 40 National bank of Canada Financial brokers between April 30, 2013 and July 23, 2013.
Aegis Capital broker, Thomas Juliano, was fined $5,000 and suspended from the financial industry for two months. Thomas Juliano, while employed at Aegis received over $80,000 in commissions from another firm outside Aegis Capital for selling seven fixed annuities to five different investors. Two of these investors were customer at Aegis Capital. The annuities were worth over $1.3 million dollars.
The FINRA Department of Enforcement filed a complaint against Radnor Research & Trading Co., William Scholander, and Talman Harris. According to the complaint, Radnor Research & Trading Co. failed to ensure that material information was relayed to customers and failed to report customer complaints. Specifically, in late 2011 Radnor Research & Trading Co. faield to reperot two customer complaints made against its brokers. One customer complained that certain trades were unauthorized and made a demand for damages. Another potential customer complained that a Radnor Research & Trading Co. broker had participated in unethical or illegal behavior and even suggested possible market manipulation. Radnor Research & Trading Co. failed to report either customer complaint. Radnor Research & Trading Co. also failed to report an unauthorized trade complaint against William Scholander and Talman Harris. FINRA is seeking sanctions against Radnor Research & Trading Co., William Scholander and Talman Harris for failing to report these complaints.
Tuesday, January 6, 2015
Oppenheim & Co., Inc. was fined $250,000 for failing to establish and maintain and adequate supervisory system signed to monitor, supervise and control its extension of margin loans for foreign sovereign debt. Specifically, Oppenheim & Co., Inc. failed to consider the risks of extending margin credit for foreign sovereign bonds. Oppenheim & Co., Inc. also failed to have supervisory recourses designed to monitor the risk of holding below-investment-grade foreign sovereign bonds. Finally, Oppenheim & Co., Inc. failed to take adequate steps to determine whether a ready market existed for below-investment-grade foreign sovereign bonds.
Canaccord Genuity, Inc. was fined $50,000 for inaccurately appending modifiers to transaction reports submitted to FINRA. On one occasion, Canaccord Genuity, Inc. Misidentified 22 transactions as the type which qualified for an exception from certain regulations. Additionally, Canaccord Genuity, Inc. failed to immediately publish a bid or offer that reflected the price and entire size of nine customer limit over the counter (OTC) equity orders.
Waddell & Reed broker, Irvin Wayne Brewer was fined $5,000 and suspended from the securities industry for 30 days. According to Irvin Wayne Brewer’s BrokerCheck Report, Irvin Wayne Brewer formed his own LLC, while registered with Waddell & Reed. Irvin Wayne Brewer received compensation for forming this LLC from two Waddell & Reed customers for offering planning advice through this independent LLC. Irvin Wayne Brewer has four customer complaints on his BrokerCheck Report, and two judgments or liens for failing to pay taxes. Irvin Wayne Brewer left Waddell & Reed in 2013 and has been working for Money Concepts Capital Corp ever since.
UBS Financial Services broker, Russell Darin Hurley, was fined $5,000 and suspended from the financial industry for 30 days. According to Russell Darin Hurley’s BrokerCheck Report, Russell Darin Hurley, while employed at UBS Financial, loaned $30,000 to a UBS customer without notifying UBS of the loan. Additionally, Russell Darin Hurley made inaccurate statements on his UBS compliance questionnaire regarding this loan.
LPL Financial broker, Edward H. Oudenne was fined $5,000 and suspended from the financial industry for three months for failing to report tax liens on his account. Specifically, while at LPL Financial, Edward H. Oudenne field to tell LPL Finanical about two tax liens and two compromises on his Form U4. Edward H. Oudenne no longer works at LPL Financial, and he is currently a broker at H. Beck, Inc.
Former J.P. Morgan broker, Jamal Romero was permanently barred from the financial industry. According to Jamal Romero’s BrokerCheck Report, Jamal Romero, while employed at J.P. Morgan, completed account withdrawal slips and forged a bank customer’s signature on at least three forms in connection with three withdrawals. As a result of these forgeries, the customer’s sister was able to misappropriate $3,900 from the customer’s account. Jamal Romero was terminated by J.P. Morgan in 2013 for the abovementioned conduct.
FINRA filed a complaint against J.P. Morgan broker, Heather Marie McCall for conducting outside business activity and receiving compensation from another broker-dealer firm. When Heather Marie McCall was questioned by J.P. Morgan about this outside business activity, she denied it. FINRA is seeking sanctions against Heather Marie McCall.
Wednesday, January 7, 2015
The FINRA Department of Enforcement filed a complaint against former Blackwall Capital Markets broker, John William Murdy. According to the complaint, John William Murdy, while employed at Blackwall Capital Markets, Inc., logged onto Blackwall Capital Market’s Inc.’s CRD sytem and submitted a false Form U5, Uniform Termination notice for Securities Industry registration for Blackwall Capital market’s CEO. John William Murdy used another Blackwall Capital Markets, Inc.’s electronic signature to willfully filed false and inaccurate information because the CEO failed to give John William Murdy with funds he requested. John William Murdy was terminated from Blackwall Capital markets, Inc. in 2012 and is currently employed at Avenir Financial Group.