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 $2 m...

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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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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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SunTrust Investment Services Fined $1.44 Million for Fraudulent Sales of Unit Investment trusts and Mutual Funds.

Sanction Includes $540,000 to Defrauded Customers;

Broker David Bredenburg Barred

Donald Mattran , Former Branch Manager Suspended

The Financial Industry Regulatory Authority (FINRA) announced today thatSunTrust Investment Services, Inc. has agreed to pay$1.44 million to settle regulatory charges that it sold unsuitable unit investment trusts (UIT), closed-end fund (CEF) and mutual fund transactions to 17 customers who incurred loss...

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Sutherland Asbill & Brennan LLP announced that it completed its annual review of disciplinary actions brought by the Financial Industry Regulatory Authority (FINRA) in 2009.  On June 22, 2010, FINRA issued its “2009 Year in Review.”  By reviewing FINRA’s notices and releases, Sutherland Partners Deborah G. Heilizer and Brian L. Rubin and Associate Shanyn L. Gillespie found that FINRA reported modest increases in fines and disciplinary actions in 2009, as compared to 2008, but was less active than in 2005, 2006 and 2007.  Sutherland also identified the...

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