Merrill Lynch Agrees To Pay $2.5 Million To Settle Alleged Failures To Provide Sales Charge Discounts On Unit Investment Trust UIT Purchases.

The Financial Industry Regulatory Authority (FINRA) has issued an order imposing fines of $500,000 on Merrill Lynch, Pierce, Fenner, & Smith (“Merrill Lynch” or “Merrill” or “Respondent”) for allegedly failing to provide sales charge discounts (such as ”breakpoint discounts” and “rollover and exchange discounts) to Merrill Lynch customers on certain Unit Investment Trust UIT purchases, according to an August 18, 2010 FINRA securities & investment regulatory press release.   Merrill Lynch will reportedly pay $2 million to compensate affected Unit Investment Trust UIT customers.

According to FINRA, between October 2006 and June 2008, Merrill Lynch failed to appropriately apply discounts on rollover and breakpoint purchases resulting in Merrill Lynch customers being overcharged on their Unit Investment Trust UIT purchases.

In settling this matter, Merrill Lynch neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In A Merrill Lynch Unit Investment Trust Or Other Investment and Believe Merrill Lynch May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Broker Fraud Lawyer:

-Recover Merrill Lynch Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Merrill Lynch, Share Your Merrill Lynch Securities & Investment Comments With Others Below.

Merrill Lynch To Pay $2.5 Million For Allegedly Failing To Provide Unit Investment Trust UIT Sales Charge Discounts is a post from: YourSecuritiesArbitrationLawyer.com

Morgan Stanley Ordered To Pay $800,000 By FINRA for Allegedly Failing To Disclose Certain Information About the Relationships Morgan Stanley, or its Analysts, Had With Companies Covered in its Research Reports and The Availability of Independent Research in Customer Account Statements.

The Financial Industry Regulatory Authority (FINRA) has issued an order censuring and imposing fines on Morgan Stanley & Co., Inc. in the amount of $800,000 to settle charges relating to Morgan Stanley’s alleged failure to make public disclosures required by FINRA’s rules governing research analyst conflicts of interest and failure to comply with the 2003 Research Analyst Settlement requiring firms disclose the availability of independent research in broker customer account statements, according to an August 10, 2010 FINRA securities & investment regulatory press release.

FINRA reportedly found that from April 2006 to June 2010, Morgan Stanley issued equity research reports that failed to disclose accurate information about the relationships Morgan Stanley, or its analysts, had with companies covered in its research reports, representing approximately 6,836 deficient disclosures in about 6,632 equity research reports and 84 public appearances by research analysts, including the following alleged deficient disclosures:

• Securities holdings of an analyst, or a member of the analyst’s household, in a subject company;
• Morgan Stanley’s receipt of investment banking and non-investment banking revenue from subject companies;
• Morgan Stanley’s role as a manager, or co-manager, of a public offering of securities for subject companies;
• Morgan Stanley’s role as a market maker for certain subject companies’ securities; and
• Price charts for securities covered in equity research reports and the valuation method used to support published price targets.

According to FINRA, Morgan Stanley also did not disclose in approximately 127,600 monthly Morgan Stanley brokerage account statements sent to Morgan Stanley customers from August 2007 to February 2008 that it had available independent, third-party research.

In settling this matter, Morgan Stanley neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In Any Morgan Stanley Investment or Brokerage Account and Believe Morgan Stanley May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Broker Fraud Lawyer:

-Recover Morgan Stanley Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Morgan Stanley, Share YourMorgan Stanley Securities & Investment Comments With Others Below.

Morgan Stanley Censured and Fined $800,000 For Alleged Deficient Conflict of Interest Disclosures in Equity Research Reports and Public Appearances by Research Analysts is a post from: YourSecuritiesArbitrationLawyer.com

SunTrust Investment Services Ordered To Pay $1.4 Million By FINRA for Alleged Unsuitable Unit Investment Trust (UIT), Closed-End Fund (CEF) and Mutual Fund Transactions.

The Financial Industry Regulatory Authority (FINRA) has issued an order imposing fines on SunTrust Investment Services, Inc.  in the amount of $1.44 million to resolve charges related to unsuitable unit investment trust (UIT), closed-end fund (CEF) and mutual fund transactions, according to a July 22, 2010 FINRA securities & investment regulatory press release.  $900,000 reportely represents a fine that includes $224,000 in disgorgement of broker commissions earned on the alleged unsuitable trades while $540,000 represents restitution to certain customers who allegedly incurred brokerage account losses.

According to FINRA, SunTrust Investment Services engaged in 294 unsuitable short-term Unit Investment Trust (“UIT”), Closed-End Fund (“CEF”) and mutual fund transactions in certain customer accounts that allegedly involved recommending a short-term trading strategy of buying and selling Unit Investment Trusts and Closed-End Funds less than a year after purchase and using the proceeds to purchase other Unit Investment Trusts or Closed-End Funds, often with sales load fees as high as 4 and 5%.

In addition, FINRA reportedly found that SunTrust failed to ensure that eligible customers received the maximum sales charge discount on UIT purchases and lacked adequate systems and procedures for monitoring and supervising UIT, CEF and margin transactions.

In settling this matter, SunTrust Investment Services neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In Any SunTrust Investment Services Investment, or Brokerage Account and Believe SunTrust Investment Services May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Broker Fraud Lawyer:

-Recover SunTrust Investment Services Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About SunTrust Investment Services, Share Your SunTrust Investment Services Securities & Investment Comments With Others Below.

SunTrust Investment Services Ordered To Pay $1.4 Million For Alleged Unsuitable Closed-End Fund and Mutual Fund Transactions is a post from: YourSecuritiesArbitrationLawyer.com

Phoenix Derivatives Group and Eight Brokers Ordered To Pay $4.3 Million By FINRA for Allegedly Engaging In Improper Communications About Customers’ Interdealer Brokerage Rate Negotiations in the Wholesale Credit Default Swap (CDS) Market.

The Financial Industry Regulatory Authority (FINRA) has issued an order imposing fines on Phoenix Derivatives Group, LLC of New York and eight brokers – three employed at Phoenix and five at four other interdealer brokerage firms – for improper communications about customers’ proposed brokerage rate reductions in the wholesale credit default swap (CDS) market, according to a June 24, 2010 FINRA securities & investment regulatory press release.

FINRA reportedly found that the brokers engaged in communications with personnel at other interdealer brokerage firms that improperly attempted to influence those firms and individuals, including communications regarding reactions to customers’ proposed rate reductions and statements concerning actual or contemplated interdealer broker responses or counter-positions to the customers’ proposed rate reductions and/or discussions about creating identical, or similar, individual counter-proposals to rate reduction requests.

Phoenix Derivatives Group was fined $3 million (of which $900,000 is a joint and several fine apportioned among the three CDS desk co-heads).  In addition to Phoenix and its desk co-heads, five brokers at other interdealer firms in the CDS market were reportedly fined a total of $1.3 million and issued suspensions by FINRA:

• Thomas J. Lewis and Matthew A. Somers, former brokers and co-managers for the CDS desk at Chapdelaine Corporate Securities & Co., of New York, were each fined $350,000 and suspended from working in the securities industry in all capacities for six months and three months, respectively.
• John P. Tompkins, a former broker and manager of the CDS desk at CreditTrade (US) Corp., of New York, was fined $100,000 and suspended in all capacities for four months.
• Michael B. Jessop, a former broker and co-manager of the CDS desk at Tullett Liberty Inc., of New York, was fined $250,000 and suspended in all capacities for two months.
• Eric Ridder, a former broker for Creditex Group, Inc., of New York, was fined $250,000 and suspended in all capacities for two months.

In settling this matter, Phoenix Derivatives Group and the eight brokers neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In Any Phoenix Derivatives Group Investment, or Brokerage Account and Believe Phoenix Derivatives Group May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Broker Fraud Lawyer:

-Recover Phoenix Derivatives Group Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Phoenix Derivatives Group, Share Your Phoenix Derivatives Group Securities & Investment Comments With Others Below.

Phoenix Derivatives Group & Eight Brokers Fined $4.3 Million Over Alleged Improper Communications About Customers’ Interdealer Brokerage Rate Negotiations is a post from: YourSecuritiesArbitrationLawyer.com

Piper Jaffray Ordered To Pay $700,000 By FINRA for Allegedly Failing to Retain Emails In Violation Of Federal Securities Law And NYSE, NASD and FINRA Rules.

The Financial Industry Regulatory Authority (FINRA) has issued an order requiring Piper Jaffray & Co. to pay a monetary fine of $700,000 for violations related to its alleged failure to retain approximately 4.3 million emails from November 2002 through December 2008, according to a May 24, 2010 FINRA securities & investment regulatory press release.

Piper Jaffray also reportedly failed to disclose its email retention and retrieval issues to FINRA, which may have affected Piper Jaffray’s ability to comply with email extraction requests from FINRA or to respond to email requests from other regulators or from parties in civil litigation or arbitrations.  Piper Jaffray also agreed to a censure.

In settling this matter, Piper Jaffray neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

In U.S. Bancorp Piper Jaffray Inc., Case No. 02-227 (NYSE Hearing Board November 15, 2002) Piper Jaffray was previously disciplined for violations regarding its alleged failure to preserve electronic email communications as required by NYSE & NASD Rules and federal securities laws.  In that case, Piper Jaffray reportedly consented to a censure and sanction of $1,650,000 by the Securities & Exchange Commission, New York Stock Exchange and NASD arising from investigations of Piper Jaffray’s alleged conflicts of interest between its investment banking and research departments.

For more information on Piper Jaffray’s settlement of alleged rule violations, read Piper Jaffray’s financial regulatory authority letter of acceptance, waiver and consent, No. 20090197795.

If You Lost Money In Any Piper Jaffray Investment, Retirement or Brokerage Account and Believe Piper Jaffray May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Stock Broker Fraud Lawyer:

-Recover Piper Jaffray Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Piper Jaffray Settlement, Share Your Piper Jaffray Securities & Investment Comments With Others Below.

Piper Jaffray Censured & Fined $700,000 For Alleged Email Retention Violations is a post from: YourSecuritiesArbitrationLawyer.com

Citigroup Global Markets Ordered By FINRA To Pay $1,500,000 for Allegedly Failing to Supervise Handling Of Trust Funds Belonging To Cemeteries In Michigan and Tennessee .

The Financial Industry Regulatory Authority (FINRA) has issued an order requiring Citigroup Global Markets, Inc. to pay a monetary sanction of $1.5 million (a $750,000 fine and disgorgement of $750,000 in commissions) for supervisory failures relating to its handling of trust funds belonging to cemeteries in Michigan and Tennessee, according to a May 26, 2010 FINRA securities & investment regulatory press release.

FINRA reportedly found that from September 2004 through October 2006, Citigroup broker Mark Singer and two of his customers were involved in a scheme to misappropriate an amount alleged in various legal actions to be over $60 million in cemetery trust funds.

FINRA’s investigation reportedly showed that Citigroup Global Markets failed to reasonably supervise the handling of these accounts by inadequately responding to a succession of “red flags,” failures that permitted the scheme to continue undetected until October 2006.  In settling these matters, Citigroup Global Markets reportedly neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In Any Citigroup Global Markets Investment, Retirement or Brokerage Account and Believe Citigroup Global Markets May Be To Blame For Your Losses, Contact A Securities Arbitration Attorney and Stock Broker Fraud Lawyer:

-Recover Citigroup Global Markets Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Citigroup Global Markets, Share Your Citigroup Global Markets Securities & Investment Comments With Others Below.

Citigroup Global Markets Sanctioned $1.5 Million For Alleged Supervisory Violations Relating to Cemetary Trust Funds is a post from: YourSecuritiesArbitrationLawyer.com

Former John Hancock Mutual Life Insurance Company and ING Financial Partners Florida Broker Barred By FINRA For The Alleged Sale Of Fictitious CDs and Bonds.

The Financial Industry Regulatory Authority (FINRA) has permanently barred a former Florida John Hancock Mutual Life Insurance Company and ING Financial Partners, Inc. broker, Michael J. DiMare, from the securities industry for allegedly misappropriating over $1.9 million in brokerage client funds and making false statements and sending falsified brokerage account statements and other documents to customers to hide the scheme, according to a May 11, 2010 FINRA securities & investment regulatory press release.

From at least 2001 to 2008, the broker reportedly persuaded investors to invest in fictitious tax-free corporate bonds and CDs.  Between 2001 and 2006, the broker was reportedly employed as a sales manager with John Hancock Mutual Life Insurance Company and between October 2006 and May 2008, the broker was reportedly  registered as a registered representative/insurance agent with ING Financial Partners, Inc.

According to FINRA, John Hancock Mutual Life Insurance Company and ING Financial Partners customers whose funds were misappropriated or converted were reimbursed by John Hancock and ING.

If You Lost Money In Any John Hancock Mutual Life Insurance Company or ING Financial Partners Investment, Retirement or Brokerage Account and Believe John Hancock Mutual Life Insurance Company or ING Financial Partners May Be To Blame For Your Losses, Contact A Stock Broker Fraud Lawyer & Securities Arbitration Attorney.

-Report & Recover John Hancock Mutual Life Insurance Company Or ING Financial Partners Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About The Former John Hancock Mutual Life Insurance Company and ING Financial Partners Broker Barred By FINRA, Share Your Securities & Investment Comments With Others Below.

Former John Hancock Mutual Life Insurance Company & ING Financial Partners Broker Michael J. DiMare Barred For Allegedly Selling Phony Financial Products is a post from: YourSecuritiesArbitrationLawyer.com

Westpark Capital Ordered By FINRA To Pay $400,000 for Allegedly Failing to Supervise Brokers With Disciplinary Histories & Customer Complaints Who Churned Accounts, Engaged in Unauthorized, Excessive & Unsuitable Trading.

The Financial Industry Regulatory Authority (FINRA) has issued an order requiring Westpark Capital, Inc. to pay a total of $400,000 (a $100,000 fine and $300,000 in restitution to affected Westpark Capital customers) for supervisory system failures and  suspended two officers for failing to supervise Westpark Capital brokers who churned customer accounts and engaged in unauthorized and unsuitable trading in accounts in two now-closed Long Island branches, according to a May 6, 2010 FINRA securities & investment regulatory press release.

FINRA reportedly found that between February 2006 and July 2007, Westpark Capital failed to establish and maintain an adequate system for supervising its brokers.  In concluding the settled proceedings, Westpark Capital neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

If You Lost Money In Any Westpark Capital Investment, Retirement or Brokerage Account and Believe Westpark Capital May Be To Blame For Your Losses, Contact A Stock Broker Lawyer & Securities Arbitration Attorney.

-Report & Recover Westpark Capital Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About Westpark Capital, Share Your Westpark Capital Securities & Investment Comments With Others Below.

Westpark Capital Ordered To Pay $400,000 For Allegedly Failing to Supervise Brokers is a post from: YourSecuritiesArbitrationLawyer.com

Deutsche Bank Securities & National Financial Services Receive Fines For Allegedly Facilitating Customer Execution of Short Sales Through Direct Market Access Order Systems That Violated the ‘Locate’ Requirement of Regulation SHO

The Financial Industry Regulatory Authority (FINRA) has fined two broker-dealers, Deutsche Bank Securities & National Financial Services, a total of $925,000 (Deutsche Bank Securities was fined $575,000 and National Financial Services (NFS) was fined $350,000) for executing short sale orders in violation of Regulation SHO and related supervisory violations, according to a May 13, 2010 FINRA securities & investment regulatory press release.

Regulation SHO reportedly prohibits a broker or dealer from accepting or effecting a short sale order in an equity security without reasonable grounds to believe that the security can be borrowed, so that it can be delivered on the date delivery is due.  A broker or dealer is required to identify and document a source (referred to as a Locate or Locates) from which to borrow such security prior to effecting a short sale.

FINRA’s review of a sample of short sale orders at Deutsche Bank Securities & National Financial Services reportedly revealed that some short sale orders entered through the Deutsche Bank Securities & National Financial Services Direct Market Access trading systems were released for execution without evidence that a locate had actually been obtained.

If You Lost Money In Any Deutsche Bank Securities Or National Financial Services Investment, Retirement or Brokerage Account and Believe Deutsche Bank Securities Or National Financial Services May Be To Blame For Your Losses, Contact A Stock Broker Lawyer & Securities Arbitration Attorney.

-Report & Recover Deutsche Bank Securities Or National Financial Services Brokerage Account Losses-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About The Deutsche Bank Securities & National Financial Services FINRA Fines, Share Your Securities & Investment Comments With Others Below.

Deutsche Bank Securities & National Financial Services Fined For Alleged Short Sale Violations is a post from: YourSecuritiesArbitrationLawyer.com

RBC Capital Markets Corporation, Fagenson & Co., Alpine Securities Corp., Equity Station and Olympus Securities Fined $385,000 By FINRA For Sale 8 Billion Shares of Unregistered Penny Stocks, Including Universal Express, Inc.

The Financial Industry Regulatory Authority (FINRA) has fined five broker-dealers, RBC Capital Markets Corporation, Fagenson & Co., Alpine Securities Corp., Equity Station and Olympus Securities for allegedly selling billions of shares of Universal Express Inc.’s unregistered stock and unregistered shares of other penny stocks, according to a FINRA regulatory press release.

Fagenson & Co., RBC Capital Markets, Alpine Securities, Equity Station and Olympus Securities reportedly failed to take appropriate steps to determine whether the securities could be sold without violating federal registration requirements, despite purported red flags indicating that illegal stock distributions might have been taking place.

Fagenson & Co., RBC Capital Markets, Alpine Securities, Equity Station and Olympus Securities consented to pay the fines to settle the securities fraud allegations, but neither admitted nor denied the securities fraud charges.

For more information on the RBC  Capital Markets Corporation, Fagenson & Co., Alpine Securities  Corp., Equity Station and Olympus Securities FINRA regulatory action, read the Letters of Acceptance, Waiver and Consent:

• Fagenson & Co. Action
• RBC Capital Markets Corporation Action
• Alpine Securities Corporation Action
• Equity Station Inc. Action
• Olympus Securities, LLC Action

If You Lost Money In Your RBC Capital Markets Corporation, Fagenson & Co., Alpine Securities Corp., Equity Station and Olympus Securities Brokerage Account and Believe Your Stock Broker, Advisor or Investment Consultant May Be To Blame, Contact A Stock Broker Fraud & Securities Arbitration Attorney.

Fill Out The Form On The Right For A Free Attorney Review.

-Recover Penny Stock Losses-

If You Have Thoughts On The RBC Capital Markets, Fagenson & Co., Alpine Securities , Equity Station and Olympus Securities FINRA Fines, Share Your Comments With Others Below.

RBC Capital Markets, Fagenson & Co., Alpine Securities, Equity Station & Olympus Securities Fined for Sale of Unregistered Securities, Including Universal Express Penny Stock is a post from: YourSecuritiesArbitrationLawyer.com