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Broker made millions off of elderly in Ponzi scheme says SEC and FINRA

By | November 20th, 2019|Categories: FINRA, Ponzi|Tags: , , |

A former broker accused of running a Ponzi scheme targeting elderly investors is banned from the securities industry by the U.S. Securities and Exchange Commission. James Booth of Norwalk, Connecticut was arrested on September 30, 2019 after the U.S. Department of Justice and the SEC said he raised approximately $4.9 million from nearly 40 investors. [...]

Reddit users who exploited finance app could be investigated by SEC, says expert

By | November 19th, 2019|Categories: Uncategorized|Tags: , , , |

Reddit users found what they call a “cheat code” to the trading app Robinhood. According to a thread on r/wallstreetbets, users figured out how to trade stocks with money they didn’t have but the app thought they did. Bloomberg describes the cheat code as “allowing users to trade stocks with excess borrowed funds, giving them [...]

Mass tort, explained

By | November 19th, 2019|Categories: Uncategorized|

Products that cause injury through design flaws or fail to properly give consumers an adequate warning can lead to mass tort. These cases can involve hundreds or thousands of people if a product causes injury to multiple people. But like many aspects in the legal system, mass tort can be confusing to understand. Here is [...]

Merrill Lynch, Raymond James pay $12 million to FINRA

By | November 18th, 2019|Categories: Uncategorized|Tags: , , , |

Customers who incurred excess fees on their 529 plans through Merrill Lynch, Pierce, Fenner & Smith, Raymond James & Associates, Inc., and Raymond James Financial Services, Inc. will receive approximately $12 million in restitution. The move comes after the Financial Industry Regulatory Authority announced on November 6, 2019, that the firms Merrill Lynch and Raymond [...]

SEC may update advertising rules

By | November 18th, 2019|Categories: FINRA|Tags: , , |

Professionals in the securities industry may get more freedom when it comes to advertising. In early November 2019, the U.S. Securities and Exchange Commission proposed updating the Investment Advisers Act of 1940 to allow investment advisers using endorsements and testimonials for advertisements on social media. Should the proposal be approved, the amendment would be the [...]

FINRA hits Merrill Lynch, Raymond James with $12 million in fines for 529 plans

By | November 15th, 2019|Categories: FINRA|Tags: , , |

Customers who incurred excess fees on their 529 plans through Merrill Lynch, Pierce, Fenner & Smith, Raymond James & Associates, Inc., and Raymond James Financial Services, Inc. will receive approximately $12 million in restitution. The move comes after the Financial Industry Regulatory Authority announced on November 6, 2019, that the firms Merrill Lynch and Raymond [...]

SIFMA tests firms to see if they can withstand a cyber attack

By | November 15th, 2019|Categories: Uncategorized|Tags: , , , , |

Brokers and firms found out if they were well prepared against a cyber security attack in early November 2019. The Securities and Financial Markets Association (SIFMA) tested hundreds of people in the securities industry on November 7, 2019 with its Quantum Dawn V test. The test is a simulated cyberattack and tests how well firms [...]

Firms to be tested on cyber security readiness November 2019

By | November 14th, 2019|Categories: FINRA|Tags: , , , |

Are brokers and firms prepared against a cyber-attack? The Securities Industry and Financial Markets Association (SIFMA) will test how well firms can survive data hacks, bad data and more. CNBC reports SIFMA will likely test firms in the securities industry this fall to see if how workers respond to online attacks. The test is known [...]

The SEC is investigating Under Armor

By | November 13th, 2019|Categories: Uncategorized|Tags: , , |

Under Armor is under investigation by federal authorities over the sportswear company’s accounting practices, reports the Wall Street Journal. The newspaper says source familiar with the investigation claims the U.S. Department of Justice and the Securities and Exchange Commission are conducting a joint criminal inquiry into the company. The agencies have not publicly confirmed they [...]

SEC collects $4.3 billion in fiscal year 2019

By | November 13th, 2019|Categories: FINRA|Tags: , , |

The U.S. Securities and Exchange Commission’s Division of Enforcement announced on November 6, 2019 that it ordered more than $4.3 billion in disgorgement and penalties for the 2019 fiscal year. The SEC also reports returning approximately $1.2 billion to harmed investors through enforcement actions. “Across a broad array of cases, the Enforcement staff has continued [...]