The SEC, FinCEN and FINRA Sanction Broker

The anti-money laundering and customer identification rules are important market policing tools monitored by the SEC, the Financial Crimes Enforcement Network or FinCEN and FINRA. Pinnacle Capital Markets LLC, a broker dealer whose customers are largely outside the United States, was sanctioned by...

Grandmother Test Applied – FINRA Sanctions for Conversion of Customer Securities Upheld

Mission Securities, Corp., Craig M. Biddick , Exchange Act Rel. 63453, December 7, 2010 Time since appeal filed - 8 months 6 days Time since last brief - 4 months 26 days FINRA found that Mission and Biddick, a rep at the firm converted customer securities. Mission was expelled and...

FINRA Rule Not Retroactive

In her remarks at PLI's SEC Speaks, SEC Commissioner discussed the question of retroactivity as it might apply to various provisions of Dodd-Frank (here). There are of course a number of provisions in the Act which enhance the authority of SEC enforcement. Whether any or all of those provisions...

This Week in Securities Litigation (March 25, 2011)

The Galleon insider trading trial continues this week in New York. In another New York court room the Commission struggled to have a partial settlement approved by the court. While the agency secured the necessary approval it was not without a cost: The court reserved the right to reconsider the...

A New Insider Trading Probe: The Senate Investigates the SEC

Insider trading has long been an SEC enforcement priority. While the Manhattan U.S. Attorney has brought the headline grabbing cases, the SEC has been equally aggressive in a series of actions which may redefine the insider trading (here). This has been a strength of the retooled SEC enforcement...

SEC Reversed Again by the D.C. Circuit

The SEC lost another case in the D.C. Circuit Court of Appeals. This time, however, it did not involve rule making. Rather, the action focused on the imposition of a life time bar from the securities business by FINRA which was affirmed by the Commission on appeal. Saad v. Securities and Exchange...