December 2015

Eleven Financial Advisors Are Disciplined by CFP Board
Eleven advisors are guilty of violating CFP regulations, the board announced Tuesday.

Barclays Fined $3.75M For Unsuitable Transactions
Barclays has been fined $3.75 million and ordered to pay $10 million in restitution for switching clients into unsuitable mutual funds, Finra announced Tuesday.

Jailed Hedge Fund Managers Sanctioned By SEC
Three Connecticut managers are barred from the securities industry for fraud related to a $750 million hedge fund complex that collapsed in the financial crisis.

Ex-Morgan Stanley Advisor Avoids Prison for Client Data Theft
Prosecutors say the advisor called the stolen data on 730,000 clients “the world’s best cold-calling list.”

Morgan Stanley Investment Management to Pay $8 Million
MSIM failed to properly supervise an employee who conducted illegal bond transactions, the SEC says.

Cantor Fitzgerald Fined $7.3 Million For Unregistered Microcap Sales
Cantor Fitzgerald & Co. allegedly sold unregistered microcap stocks without due diligence, leading to a $7.3 million settlement with Finra.

Las Vegas FA Hit With Criminal Charges In Alleged $30 Million 'Pump and Dump' Scheme
A Las Vegas advisor was hit with a Newark, N.J., federal grand jury criminal indictment for allegedly participating in a $30 million “pump and dump” scheme.

Fraudster Plans Scheme While In Prison For Earlier Fraud, SEC Says
Edward Durante used numerous aliases to pull off the $14 million scheme, a U.S. Attorney alleges.

JP Morgan Fined $267 Million For Conflicts of Interest
Two JP Morgan subsidiaries will pay fines for failing to disclose conflicts when investing client assets in proprietary mutual funds.

Finra Fines Fidelity For Failing To Detect Imposter Broker
Finra has fined Fidelity's brokerage arm for failing to detect an imposter broker who stole $1 million from clients.

Wells Fargo Advisors Sued Over Charge Former Broker Stole From Sisters
Wells Fargo Advisors is being sued for more than $500,000 over allegations that a former broker at the firm stole money from two elderly clients.

MIT Professor And Son Get 45 Months In Prison For Hedge Fund Fraud
Two former hedge fund managers were sentenced to 45 months in prison for misleading investors into investing more than $500 million in their fraudulent hedge fund business, said the U.S...

Ex-N.Y. Legislator's Son-In-Law Gets 2 Years In Prison For Fraud
A son-in-law of indicted former New York Assembly Speaker Sheldon Silver was sentenced to two years in prison on Wednesday for running a Ponzi scheme that defrauded investors out of nearly $6...

SEC Sues RIA For Hiding Benefits To Socially Responsible B-D
The SEC filed a suit against a Stamford, Conn., advisor for investing $43 million in customer money in dubious, illiquid bonds without disclosing a conflict of interest.

$100 Million Real Estate Fraud Ends In Penalties
A Utah investment advisor and his company are ordered to pay nearly $70 million in disgorgement and penalties, SEC says.

Promoting Back-Tested Data Lands Arizona RIA In Hot Water
The $737 million RIA is the seventh firm in the last four years that the SEC has charged with not telling clients that results were hypothetical.

New York Advisor Gets 20-Year Sentence For Stealing Clients' Money
Scott Valente was convicted of stealing millions from clients and using some of the money for himself.