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Merrill Lynch UIT Sales Charge Investment Fraud
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August 20, 2010 @ 10:04 am |
Merrill Lynch UIT Sales Charge Investment Fraud
Firm is fined $500,000, Ordered to Pay Over $2 Million to Customers
The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch $500,000 for failing to provide sales charge discounts to customers on eligible purchases of Unit Investment Trusts (UITs). FINRA also found that Merrill Lynch failed to have an adequate supervisory system in place to ensure customers received appropriate UIT discounts. The firm also agreed to provide remediation of more than $...
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HSBC Securities (USA) Inc. Fined for Fraudulent Sale of Risky CMO Securities
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August 20, 2010 @ 9:36 am |
FINRA (The Financial Industry Regulatory Authority) settled an enforcement action and entered into an Acceptance Waiver & Consent with HSBC Securities (USA) Inc., which included a $375,000 fine, for recommending unsuitable sales of inverse floating rate Collateralized Mortgage Obligations (CMOs) to retail customers.
FINRA found that HSBC failed to supervise the suitability the sales of CMOs to customers and also failed to fully disclose or explain the risks of these...
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Investment research analyst fraud continues at Morgan Stanley
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August 11, 2010 @ 8:24 am |
Following the 2003 Global Settlement with FINRA and the Securities & Exchange Commission, were Morgan Stanley paid $125 million in fines, disgorgement, and "procurement of Independent Research," it seems Morgan Stanley has been caught again publishing inaccurate and misleading investment research report, which fail to disclose Morgan Stanley’s financial interests, and conflicts of interest to customers with respect to the recommendation of securities.
After being caught, Morgan Stanley quickly and quietly settled a proposed FINRA enforcement action by enter...
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World Money Laundering Report Vol. 9 No. 3
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Earnings Magic and the Unbalance Sheet: The Search for Financial Reality
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