Category Archives: FINRA
FINRA Expels Thornes & Associates, Inc. and its President for Stealing From Two Clients
The FINRA Department of Enforcement has expelled brokerage firm Thornes & Associates, Inc. Investment Securities (“Firm”) and barred its President and Chief Compliance Officer, John Thomas Thornes (“Thornes”), from association with any FINRA member. According to the Order Accepting Offer of Settlement (“Order”), the Firm, based in Redlands, California, has approximately 1,100 accounts with… Read More »
Rabin Kammerer Johnson Wins FINRA Arbitration Arising Out of Life Settlement Transaction
A three-member panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators has found New York-based broker Michael Kerper liable to Florida resident Stanley Bergenfeld for making an unsuitable investment recommendation involving a life settlement transaction. In this case, Kerper, a licensed insurance agent and registered stockbroker with Royal Alliance Associates, met Mr. Bergenfeld through a… Read More »
FINRA Increases Arbitrator Scrutiny After One Indicted
The Financial Industry Regulatory Authority (“FINRA”) will increase its review of arbitrators’ backgrounds after one of its arbitrators continued to serve after he was indicted for practicing law without a license. Previously, FINRA only checked the backgrounds of potential applicants when they applied for inclusion on FINRA’s arbitrator roster. FINRA relied on arbitrators to… Read More »
FINRA Hits LPL With $7.5 Million Fine in E-mail Failure Case
LPL Financial LLC has signed a Letter of Acceptance, Waiver and Consent (“AWC”) to resolve allegations by FINRA that it made material misrepresentations to the regulator during its investigation of significant and repeated e-mail failures by the firm. According to the AWC, between 2007 and 2013, LPL suffered 35 separate, significant failures in its… Read More »
FINRA Caves-in on BrokerCheck Proposal
In a less than shocking move, FINRA has scrapped its proposed rule regarding BrokerCheck access after receiving pushback from the securities industry. The proposed rule mandated that brokerage firms include a direct link to its stockbrokers’ and firm’s specific BrokerCheck reports – rather than the BrokerCheck homepage – on its website and social media… Read More »
John Thomas Financial Charged with Fraud
The Financial Industry Regulatory Authority (“FINRA”) has filed a complaint against New York-based John Thomas Financial (“JTF”) and its CEO Anastasios “Tommy” Belesis. FINRA alleges that JTF and Belesis committed fraud in connection with the sale of America West Resources, Inc. common stock. FINRA also alleges that JTF and Belesis intimidated registered representatives, failed… Read More »
FINRA Named in Whistleblower Suit
A former examiner for the Financial Industry Regulatory Authority (“FINRA”) in its New York region claims he was fired after reporting that a loophole in FINRA’s system allowed larger broker dealers to be over-leveraged. Joseph Sciddurlo filed a whistleblower suit naming FINRA and its Chairman Richard Ketchum. Sciddurlo claims that he got high performance… Read More »
FINRA Panel Finds Firms Liable For Allowing Unauthorized Transfer of Funds
A three-member Financial Industry Regulatory Authority (“FINRA”) panel has found in favor of an investor who claimed two brokerage firms allowed her ex-husband to transfer $138,700 out of her and her daughter’s accounts, without her knowledge or consent. According to the FINRA Award, Lori Strayn claimed that her ex-husband Robert Kevin Strayn transferred funds… Read More »
FINRA Panel Awards Investor $1.1 Million
A Los Angeles Financial Industry Regulatory Authority (“FINRA”) arbitration panel has entered an award against MML Investors Services, LLC (“MML”) in favor of its customer, Karen Lamoreaux. According to Barrons, an MML broker, Steven Corzan, convinced Ms. Lamoreaux and her late husband to invest $1.2 million, obtained from their home equity and a profit… Read More »
SEC Seeking Comments on FINRA’s Proposal to Permit Disclosure of FINRA Disciplinary Complaints
The Financial Industry Regulatory Authority (“FINRA”) has filed a proposed amendment to FINRA Rule 8313 (Release of Disciplinary Complaints, Decisions and Other Information) with the Securities and Exchange Commission (“SEC”). The SEC, in turn, has published the proposed rule change for comment. FINRA Rule 8313 governs the public disclosure of disciplinary actions by FINRA…. Read More »