Contact

Click here for a confidential contact or call:

1-212-350-2764

Regulatory Violations

This archive displays posts tagged as relevant to violations of rules and regulations government the financial markets and its participants. You may also be interested in the following pages:

Page 1 of 35

November 22, 2019

BGC Financial, L.P., a futures industry voice broker and registered futures commission merchant, has agreed to pay a $3 million civil monetary penalty to resolve CFTC charges that the company did not have an adequate supervisory system and failed to adequately perform its supervisory duties, including with respect to its traditional and block trading futures brokerage businesses. In addition, BGC violated recordkeeping, reporting, and other obligations, and failed to inform the CFTC of investigations by other regulatory entities.  CFTC

October 10, 2019

Traverse Anesthesia Associates, P.C. (TAA) and six of its anesthesiologists have agreed to pay $607,966 to resolve a partially-intervened qui tam lawsuit jointly filed by two former employees.  In violation of the False Claims Act, TAA allegedly failed to meet regulatory requirements and conditions of payment in submissions to Medicare.  The unnamed whistleblowers will share a $120,000 award.  USAO WDMI

October 1, 2019

Six financial institutions, each registered or provisionally-registered swap dealers, have been ordered to pay penalties to the CFTC for their failure properly report swap data to a swap data repository as required, and/or for their failure to adequately supervise in connection with swap data reporting.  HSBC Bank USA, N.A. will pay a $650,000 fine;  Société Générale International Limited will pay a $2.5 million fine; The Northern Trust Company will pay a $1 million fine; NatWest Markets Plc will pay  $850,000; The Bank of New York Mellon will pay $750,000, and PNC Bank, National Association will pay $300,000CFTC

October 1, 2019

RBC Capital Markets, LLC, a registered futures commission merchant and subsidiary of the Royal Bank of Canada, will pay $5 million to resolve charges by the CFTC that RBC engaged in improper, fictitious, exchange for physical wash transactions (Wash EFPs), despite an earlier consent order between RBC and the CFTC regarding wash sales and fictitious transactions.  In the present action, the CFTC also found that RBC failed to meet its supervisory obligations, resulting in its failure to detect at least 385 Wash EFPs.  CFTC

October 1, 2019

Matthew D. Webb of Houston, Texas, and his employer, broker Classic Energy LLC, will pay over $1.5 million to resolve charges that Webb used material, nonpublic information from Classic customers to make trades in Webb's proprietary trading account.  In addition, Webb failed to disclose to Classic customers that he was acting not only as a broker, but also as a trading counterparty.  Classic Energy was also found to have multiple supervision and recordkeeping failures.  CFTC

September 30, 2019

Longfin Corporation has been ordered to pay $6.8 million in a default judgment entered in a federal court case alleging that Longfin filed fraudulent papers to qualify for a public offering under Regulation A+, misrepresenting the business as being based in the U.S.  In addition, Longfin reported fictitious revenue from sham commodities transactions and unlawfully distributed Longfin shares, including in unregistered transactions and to insiders and affiliates.  SEC

September 27, 2019

Advisory firms BMO Harris Financial Advisors Inc. and BMO Asset Management Corp. have agreed to pay over $37 million to resolve allegations that the companies violated the Investment Advisers Act by steering customers in their Managed Asset Allocation Program to more expensive investments from which the BMO advisor entities profited without disclosing this practice or the associated conflict of interest.  BMO will pay $29.73 million in disgorgement and prejudgment interest, along with a civil penalty of $8.25 million.  SEC

September 17, 2019

Raymond James & Associates, Inc., Raymond James Financial Services Advisors, Inc., and Raymond James Financial Services, Inc. will pay $15 million to resolve allegations that they improperly charged advisory fees on inactive retail client accounts without adequate suitability review, and charged excess commissions for brokerage customer investments in certain unit investment trusts that Raymond James recommend clients sell before their maturity, without adequate review of whether those recommendations were suitable.  SEC

September 16, 2019

Two subsidiaries of Prudential Financial, Inc., AST Investment Services Inc. and PGIM Investments LLC, will pay a civil monetary penalty of $5 million and disgorge $27.6 million to resolve charges that they failed to disclose a conflict of interest that arose between the subsidiaries, which served as investment advisors to 94 insurance-dedicated mutual funds, and Prudential, following a 2006 reorganization.  The reorganization was designed so that Prudential could receive certain tax benefits, but resulted in increased costs to the funds, which were not disclosed to the funds' boards of trustees of the beneficial owners of the funds' shares.  Prudential had previously reimbursed the funds for $155 million, and AST and PI self-reported to the SEC.  SEC
1 2 3 35

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: