According to SEC’s complaint against Strong Investment Management and its owner, Joseph Bronson, for more than four years, Bronson traded securities in Strong’s omnibus account but delayed allocating the securities to specific client accounts until he had observed the
Continue Reading CCO Liable in Cherry Picking Scheme
Doug Cornelius
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A Drop Box is not Good Custody
Redwood Wealth got into trouble with the Securities and Exchange Commission for missing the custody compliance issues related to an investment program.
Redwood Wealth had some of its advisory clients invest in an affiliated mortgage company. Obviously, there are some…
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The Non-Compliant Compliance Officer
You hate to see a peer break bad.
The Securities and Exchange Commission charged Jose Luis Casero Sanchez, a former Senior Compliance Analyst who worked in the Warsaw, Poland office of an international investment bank, with insider trading involving at…
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Compliance Bricks and Mortar for September 17
Back blogging on a regular basis for the week. Hoping to keep it up. These are some other compliance-related stories that recently caught my attention.
The Scammer Threat to Your HotlineBy Ted BanksSCCE’s The Compliance & Ethics Blog
Several…
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“May” Can Be a Failure to Disclose
I’ve complained about the Securities and Exchange Commission focusing on the use of the word “may” in disclosures. I’ve typically expected “may” to offer some optionality for the adviser. The SEC has found it inadequate in several instances. We can…
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Shadow Insider Trading
Mathew Panuwat was a business development executive at Medivation, an oncology-focused biopharmaceutical company. Panuwat learned from Medivation’s CEO that the company expected to be acquired by a major pharmaceutical company, Pfizer, within a few days, at a premium to the…
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Cyber Crackdown on Email
The Securities and Exchange Commission sanctioned three broker-dealer/investment advisers for failures in their cybersecurity policies and procedures that resulted in email account takeovers. Each of the firms was using cloud-based email accounts that were hacked. The three firms had not…
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The One with Trading in Foreign Currency when There is No Money
Minnesota residents Jason Dodd Bullard and Angela Romero-Bullard raised millions from investors, mostly friends and family, and said it would be used to trade foreign currencies. Instead, the Securities and Exchange Commission claims that the two diverted the money to…
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Compliance Bricks and Mortar for September 10
Return Time. Back to the office. Back to school for the kids. And back to blogging more regularly.
These are some of the compliance-related stories that recently caught my attention.
In Silicon Valley, Criminal Prosecutors See No Evilby David…
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SoFi, when the “Fi” stands for “fine”
SoFi Wealth, the robo-adviser ran into trouble when it substituted third-party ETFs with SoFi-sponsored ETFs in its platform.
According to the SEC order, SoFi Wealth failed to provide its clients with full and fair disclosure of its conflicts of…
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