LexisNexis® Legal Newsroom
Failing to Supervise Large Municipal Accounts

A third settled administrative proceeding arising out of the churning of two Florida municipal accounts at First Allied Securities, Inc. was filed last week. This case was brought against the firm for failing to properly supervise the account executive. In the Matter of First Allied Securities, Inc....

FINRA Failure to Supervise Sanctions Upheld

John B. Busacca, III , Exchange Act Rel. 63312, November 12, 2010 FINRA found Busacca failed to supervise back office operations at the clearing firm he was president of. FINRA also found he permitted the firm to employ an unregistered chief compliance officer. Busacca was suspended for six...

Exonerated by ALJ – Respondent's Motion for Summary Affirmance On Appeal Denied

Theodore W. Urban , Exchange Act Rel. 63456, December 7, 2010 The Commissions chief administrative law judge dismissed proceedings against Urban in this initial decision . In her decision Judge Murray found that no sanctions were appropriate for alleged failure to supervise. The Division...

Failure To Supervise Sanctions Upheld

Dennis S. Kaminski , Exchange Act Rel. 65347, September 16, 2011 NASD sanctioned Kaminski for failure to supervise sales of variable annuities. He was suspended for eighteen months, fined $50,000 and ordered to requalify before acting in any capacity requiring qualification. The Commission rejected...

This Week In Securities Litigation (Week ending July 27, 2012)

SEC enforcement brought another insider trading action this week in addition to a case alleging a manipulation, one claiming violations of Regulation M, Rule 105 and one alleging a failure to supervise. The Manhattan U.S. Attorney's Office secured another guilty plea in its expert network insider...

SEC Brings Proceedings Involving Failure to Supervise and Churning

The Commission filed two administrative proceedings centered on churning and failure to supervise claims involving Atlanta broker dealer JP Turner. One named as Respondents the firm co-founder and president, William Mello which settled. In the Matter of JP Turner & Co., LLC, Adm. Proc. File No. 3...

The SEC Talks Tough with the Cohen Case – Does It Have the Big Stick to Win?

The SEC is talking tough these days. A new policy will require admissions to settle in select cases; a settlement was rejected in the Falcone hedge fund case; charges were brought against the City of Miami. And, now the long rumored and much speculated about suit has been brought against SAC Capital...

Jefferies Settles Market Crisis Failure to Supervise Actions With SEC/USAO

Registered broker-dealer Jefferies LLC resolved failure to supervise charges tied to the market crisis with the SEC and the U.S. Attorney for the District of Connecticut. The Commission settled with the broker in an administrative proceeding. There Jefferies admitted certain facts, agreed to implement...