177 Enforcement Actions in the U.S. over past 30 days

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FINRA enforcements increased 21% over the past 30 days

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FTC issued enforcements: $8,726,254.27 over the past 30 days

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165 Final Rules go into effect in the next 30 days

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46 Mortgage Lending docs published in the last 7 days

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5330 docs with 12540 extracted obligations from the last 7 days

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108 new Proposed and Final Rules were published in the past 7 days

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10814 new docs in pro.compliance.ai within the last 7 days

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CME

7 Enforcement Documents

$467,500.00 in Fines

Penalties: $72,500.00
Respondent: Tullett Prebon (Europe) LTD
Violation: Pursuant to an offer of settlement that Tullett Prebon (Europe) Ltd. (“TP Europe”) presented at a hearing on December 10, 2020, in which TP Europe neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that between April 2019 and October 2019, as well as August 2020, TP Europe executed numerous block trades for customers in various NYMEX Energy futures contracts that TP Europe failed to report to the Exchange within the required time period following execution, as well as failed to report accurate trade details for these block trades to the Exchange… Read More

Penalties: $60,000.00
Respondent: Tullet Prebon Americas Corp.
Violation: Pursuant to an offer of settlement that Tullet Prebon Americas Corp. (f/k/a SCS Commodities Corp.) (“TP Americas”) presented at a hearing on December 10, 2020, in which TP Americas neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that between May 2019 and July 2019, TP Americas executed numerous block trades for customers in various NYMEX Energy futures contracts that… Read More

Penalties: $80,000.00
Respondent: Marex Financial
Violation: Pursuant to an offer of settlement in which Marex Financial (“Marex”) neither admitted nor denied the rule violations upon which the penalty is based, on December 10, 2020, a Panel of the New York Mercantile Exchange Business Conduct Committee (“Panel”) found that between January 1, 2020, and January 31, 2020, Marex was the executing broker for block trades in NY Harbor ULSD (“Heating Oil”), Brent Crude Oil Last Day Financial (“Brent Crude Oil”), and Crude Oil futures, and submitted inaccurate execution times to the Exchange. Marex also failed to report block trades to the Exchange within the required time period following execution… Read More

Penalties: $40,000.00
Respondent: Levmet Holdings Ltd
Violation: Pursuant to an offer of settlement that Levmet Holdings Ltd. (“Levmet”) presented at a hearing on December 10, 2020, in which Levmet neither admitted nor denied the findings, conclusions or any rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that on several occasions between January 23, 2019 and August 29, 2019, Levmet employees placed opposing orders in various COMEX Copper futures products for accounts with common beneficial ownership, resulting in those orders trading opposite one another. Levmet employees placed certain of these orders with the knowledge and intention they would achieve a wash result, for the purposes of correcting errors and transferring positions between accounts… Read More

Penalties: $50,000.00
Respondent: Tullett Prebon Americas Corp.
Violation: Pursuant to an offer of settlement that Tullett Prebon Americas Corp. (“TP Americas”) presented at a hearing on December 10, 2020, in which TP Americas neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that, in January 2019, TP Americas executed numerous block trades for customers in various NYMEX Energy futures contracts that TP Americas failed to report accurate trade details for these block trades to the Exchange… Read More

Penalties: $100,000.00
Respondent: ICAP Corporates LLC
Violation: Pursuant to an offer of settlement that ICAP Corporates LLC (“ICAP Corp.”) presented at a hearing on December 10, 2020, in which ICAP Corp. neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that between April 2019 and December 2019 and April 2020 and June 2020, ICAP Corp. executed numerous block trades for customers in various NYMEX Energy futures contracts, consisting primarily of natural gas products, that ICAP Corp. failed to report to the Exchange within the required time period following execution, as well as failed to report accurate trade details for these block trades to the Exchange… Read More

Penalties: $65,000.00
Respondent: Daniel Shak
Violation: Pursuant to an offer of settlement that Daniel Shak (“Shak”) presented at a hearing on December 10, 2020, in which Shak neither admitted nor denied the findings or conclusions or the rule violation upon which the below penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that, between September 2017 and March 2018, Shak engaged in disruptive trading activity in the Silver and Gold Futures contract markets by entering orders without the intent to trade… Read More

TREAS

1 Enforcement Documents

$665,112.00 in Fines

Penalties: $665,112.00
Respondent: Essentra FZE Company Limited (“Essentra FZE”)
Violation: Between September 2018 and December 2018, Respondent appears to have violated the North Korea Sanctions Regulations, 31 C.F.R. part 510 (NKSR), on at least three occasions. Specifically, Respondent appears to have violated § 510.212 of the NKSR when it caused U.S. persons to export, directly or indirectly, financial services to the Democratic People’s Republic of Korea (DPRK) or otherwise facilitate export transactions that would have been prohibited if engaged in by U.S. persons in apparent violation of §§ 510.206 and 510.211 of the NKSR… Read More

FTC

42 Enforcement Documents

$1,476,254.00 in Fines

Penalties: $30,000.00
Respondent: Epichouse, LLC
Violation: Respondents violated Sections 5(a) and 12 of the FTC Act by disseminating false and unsubstantiated advertisements claiming that their CBD Products, among other things: are safe for all users; treat pain better than prescription medicine like OxyContin; prevent and treat numerous serious health conditions, including age-related cognitive decline, cancer, chronic pain, diabetes, heart disease, hypertension, and migraines; and are scientifically proven to improve many serious health conditions… Read More

Penalties: $75,000.00
Respondent: Steven Taylor Schultheis
Violation: The Federal Trade Commission (“Commission”) has conducted an investigation of certain acts and practices of Steves Distributing, LLC and Steven Taylor Schultheis, individually and as an officer and owner of Steves Distributing, LLC (collectively “Proposed Respondents”)… Read More

Penalties: $20,000.00
Respondent: Marcelo Torre, Anthony McCabe
Violation: The Federal Trade Commission (“Commission”) has conducted an investigation of certain acts and practices of Bionatrol Health, LLC, a corporation, Isle Revive, LLC, also d/b/a Isle Revive CBD, a corporation, Marcelo Torre, individually and as an owner and manager of Bionatrol Health, LLC and Isle Revive, LLC, and Anthony McCabe (collectively “Proposed Respondents”)… Read More

Penalties: $85,000.00
Respondent: Andrew M. Bouchie, John R. Cavanugh, Shaun Paquette, Reef Industries Inc., Cannatera Inc., Andhemp Ltd.
Violation: The Federal Trade Commission (“Commission”) has conducted an investigation of certain acts and practices of Reef Industries, Inc., Cannatera, Inc., AndHemp, Ltd., Andrew M. Bouchie, individually and as an officer of Reef Industries, Inc., Cannatera, Inc., and AndHemp, Ltd., John R. Cavanaugh, individually and as an officer of Reef Industries, Inc., and Shaun Paquette, individually and as an officer of Reef Industries, Inc., Cannatera, Inc., and AndHemp, Ltd., (collectively “Proposed Respondents”)… Read More

Penalties: $30,000.00
Respondent: John Le, EpicHouse LLC, Cobalt Serum, Cobalt Enhance, and Cobalt Cream
Violation: The Federal Trade Commission (“Commission”) has conducted an investigation of certain acts and practices of Epichouse, LLC, also doing business as First Class Herbalist CBD, Cobalt Serum, Cobalt Enhance, and Cobalt Cream, and John Le, individually and as an officer of Epichouse, LLC (collectively “Proposed Respondents”)… Read More

Penalties: $36,254.27
Respondent: Michael Solomon, Easybutter LLC.,
Violation: The Federal Trade Commission (“Commission”) has conducted an investigation of certain acts and practices of EasyButter, LLC, and Michael Solomon, individually and as an officer of EasyButter, LLC, (collectively “Respondents”)… Read More

Penalties: $1,200,000.00
Respondent: James Cooke, Chemence Inc.
Violation: The Federal Trade Commission filed suit against cyanoacrylate glue maker Chemence, Inc., and company president James Cooke, for supplying pre-labeled and pre-packaged glues with deceptive “Made in USA” claims to trade customers to use in marketing the strong, fast-acting glues under retailer brand names… Read More

FINRA

18 Enforcement Documents

$2,296,479.00 in Fines

Penalties: $10,000.00
Respondent: Kane H. Waller
Violation: On three occasions from December 2, 2011 to January 17, 2017 (the “Relevant Period”), Kane H. Waller, a former registered representative with National Financial Services LLC (“NFS” or the “Firm”), shared customers’ material non-public block order information with one of his most significant customers (“Customer A”) on the same side of the market… Read More

Penalties: $2,760.00
Respondent: Kapil Maheshwari
Violation: The Hearing Panel found that Maheshwari violated FINRA Rule 2010 because he misused confidential information concerning a corporate acquisition obtained during his employment with his former member firm… Read More

Penalties: $53,487.93
Respondent: Kipling Jones & Company., Ltd. Robbi J. Jones
Violation: Specifically, between April 2014 and February 2016, Jones filed or caused to be filed materially inaccurate FOCUS reports in which she claimed a $70,000 certificate of deposit (“CD”) as an “allowable asset” for the Firm, when the CD had been canceled by the bank… Read More

Penalties: $685,520.00
Respondent: RBC Capital Markets, LLC AWCs (Letters of Acceptance, Waiver, and Consent)
Violation: Specifically, RBC’s supervisory system was not reasonably designed in that (1) the firm did not provide adequate guidance to representatives regarding the importance of considering share-class differences when recommending 529 plans and (2) the firm did not provide supervisors with adequate guidance or the information necessary to properly evaluate the suitability of 529 shareclass recommendations… Read More

Penalties: $5,000.00
Respondent: Neal Scott
Violation: Scott willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose two tax liens and three judgments totaling $36,693, in violation of Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010… Read More

Penalties: $411,711.00
Respondent: PHX Financial, Inc. Robert Delaplain
Violation: In addition, from May 2013 through April 2016, PHX failed to reasonably enforce its WSPs related to options. As a result, PHX violated NASD Rule 3010 and FINRA Rules 2360, 3110, and 2010. From June 2013 to April 2015, PHX, through Robert Delaplain, failed to reasonably supervise two registered representatives, Halil Kozi3 and RR A4 , who engaged in unsuitable excessive trading and unsuitable options trading in the accounts of two customers, resulting in approximately $550,000 in customer losses and gross commissions of over $350,000… Read More

Penalties: N/A
Respondent: Gautam Arora
Violation: In December 2020, Arora refused to respond to an information request issued pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010… Read More

Penalties: $1,000,000.00
Respondent: Cetera Advisor Networks LLC, Cetera Advisors LLC, Cetera Financial Specialists LLC
Violation: From January 2011 through December 2018, Networks and Advisors, and from November 2012 through January 2018, Specialists (the relevant time periods) each failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to supervise certain private securities transactions conducted by their dually-registered representatives (DRRs) at unaffiliated or “outside” registered investments advisors (RIAs)… Read More

Penalties: $5,000.00
Respondent: Drew R. Mantel
Violation: From June 2017 to September 2019, Mantel exercised discretion without written authorization in connection with approximately 140 transactions involving 13 customers. His actions violated NASD Rule 2510(b) (for conduct prior to May 8, 2019) and FINRA Rules 3260(b) (for conduct on or after May 8, 2019), and 2010… Read More

Penalties: $5,000.00
Respondent: John D. Craft
Violation: From October 2016 through February 2018, Craft violated FINRA Rule 2010 by effecting transactions in a customer’s individual retirement account (IRA) based on instructions he received from the customer’s mother, who was not authorized to direct transactions in the customer’s account… Read More

Penalties: $5,000.00
Respondent: Angel Lynn Simpson
Violation: Simpson impersonated seven Equitable customers during 11 telephone calls she placed to the Equitable call center in June through August 2019… Read More

Penalties: $18,000.00
Respondent: Calton & Associates, Inc.
Violation: Between January 1, 2019 and October 31, 2019 (the “Review Period”), Calton violated FINRA Rule 6730(a) by reporting to TRACE 1,329 customer allocation transactions in TRACE-eligible Securitized Products that should have been reported as 95 block transactions… Read More

Penalties: $65,000.00
Respondent: Supreme Alliance LLC AWCs
Violation: Between November 20, 2013, to the present, Supreme Alliance failed to develop and implement a written Identity Theft Prevention Program (the Program) reasonably designed to detect, prevent, and mitigate identity theft in connection with opening or maintaining customer accounts… Read More

Penalties: $10,000.00
Respondent: Frank H. Zito
Violation: Between May 2013 and March 2018, Zito participated in 15 private securities transactions without providing prior written notice to his FINRA member firm, in violation of NASD Rule 3040 and FINRA Rules 3280 and 2010… Read More

Penalties: N/A
Respondent: Jiong Gu
Violation: Gu failed to provide documents and information requested by FINRA pursuant to FINRA Rule 8210. Gu thereby violated FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Brian Radoo
Violation: Radoo refused to provide information and documents that were requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $20,000.00
Respondent: Michael Anthony Tavel
Violation: In 2017-2019, while registered with LPL, Tavel participated in three private securities transactions away from the firm totaling $265,000. In one of the transactions, he recommended that a senior customer invest in a private security without having a reasonable basis to believe that it was suitable. Tavel also provided misleading materials to the customer and, after the customer orally complained, improperly attempted to settle the complaint away from the firm. As a result of the foregoing, Tavel violated FINRA Rules 3280, 2111 and 2010… Read More

Penalties: N/A
Respondent: Najib H. Khan
Violation: Khan violated FINRA Rules 8210 and 2010 by failing to comply with requests to provide documents and information pursuant to FINRA Rule 8210… Read More

CFTC

2 Enforcement Documents

$8,000,000.00 in Fines

Penalties: $8,000,000.00
Respondent: TFS-ICAP, LLC, TFS-ICAP LTD,
Violation: TFS-ICAP LLC and TFS-ICAP Ltd. are liable for having violated Sections 4b(a)(2), 6(c)(1), and 4c(a)(1)-(2) of the Act, 7 U.S.C. §§ 6b(a)(2), 9(1), 6c(a)(1)-(2) (2018), and Regulations 166.3 and 180.1, 17 C.F.R. §§ 166.3, 180.1 (2020), as alleged in Counts I through IV of the Complaint… Read More

UK-FCA

11 Enforcement Documents

£26,359,407.00 in Fines

Penalties: N/A
Respondent: Red Tree Motor Company Limited
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that RTMCL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that RTMCL is a fit and proper person having regard to all the circumstances, including whether RTMCL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: £26,056,400.00
Respondent: Barclays Bank UK PLC, Barclays Bank PLC, Clydesdale Financial Services Limited (together “Barclays”)
Violation: The Authority considers that Barclays’s failings are serious for the following reasons: (1) A large number of customer accounts were potentially affected by the failings; (2) Many of these customers were vulnerable because of financial difficulties or other problems which Barclays failed to properly identify; (3) In August 2015, Barclays committed to continuously improving Collections, but the failings continued until late 2018; and (4) The failings were caused by serious systemic problems which Barclays failed to promptly identify and address… Read More

Penalties: N/A
Respondent: Total Construction Training Ltd
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that TCTL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that TCTL is a fit and proper person having regard to all the circumstances, including whether TCTL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Great Park Mtr Co Ltd
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that GPMCL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that GPMCL is a fit and proper person having regard to all the circumstances, including whether GPMCL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Guardian Home Improvements Limited
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that GHIL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that GHIL is a fit and proper person having regard to all the circumstances, including whether GHIL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: £100,000.00
Respondent: Corrado Abbattista
Violation: The Authority has decided to take this action because: (a) during the Relevant Period Mr Abbattista engaged in market manipulation as defined by Article 12(1)(a) of the Market Abuse Regulation, by placing the Misleading Orders which gave, or were likely to have given, false or misleading signals as to the supply of, or demand for, shares in the Companies, in contravention of Article 15 of the Market Abuse Regulation; and (b) as a result of his having recklessly engaged in market manipulation, he lacks integrity and is not a fit and proper person to perform any function in relation to any regulated activities carried on by an authorised or exempt person, or exempt professional firm… Read More

Penalties: £203,007.00
Respondent: Blue Gate Capital Limited
Violation: Blue Gate failed to act with due care, skill and diligence when it failed to carry out adequate due diligence, failed to investigate potentially serious issues with the Fund which had been identified by the Previous Operator and failed to establish whether the Fund was operating as it was supposed to do… Read More

Penalties: N/A
Respondent: Vehicle First Limited
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that VFL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that VFL is a fit and proper person having regard to all the circumstances, including whether VFL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Just Bank Claims Limited
Violation: The Authority decided to refuse the Application and to give this Final Notice as Just Bank Claims has failed to provide the information required by the Authority and, in the absence of the information sought, the Authority cannot ensure that Just Bank Claims will satisfy, and continue to satisfy, the threshold conditions set out in Schedule 6 of the Act… Read More

Penalties: N/A
Respondent: Westgate Wheels Limited
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that WWL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that WWL is a fit and proper person having regard to all the circumstances, including whether WWL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: PT Cars Ltd
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice and in the Decision Notice, it appears to the Authority that PTCL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that PTCL is a fit and proper person having regard to all the circumstances, including whether PTCL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

SEC

30 Enforcement Documents

$78,714,023.00 in Fines

Penalties: $1,000,000.00
Respondent: Dentsply Sirona Inc
Violation: DSI failed to make required disclosure of known trends and uncertainties in its periodic filings for the first three quarters of 2016 (“Relevant Period”… Read More

Penalties: $1,589,926.43
Respondent: Mancera, et al.
Violation: This matter involves violations of the federal securities laws and improper professional conduct by Mancera (the Mexican member firm of Ernst & Young Global), and two members of Mancera’s engagement team – then-partner Valdez, and then-senior manager Corral – during Mancera’s audits of the 2010, 2011 and 2012 financial statements of Desarrolladora Homex, SAB de CV (“Homex”), a homebuilder headquartered in Sinaloa, Mexico… Read More

Penalties: $9,889,369.00
Respondent: Roland M. Mathys
Violation: Mathys’s purchases made up a significant portion of all reported options trades in the series of Bioverativ options he traded, including almost 100 percent of the market in several instances… Read More

Penalties: $700,000.00
Respondent: Belden Inc. and Dennis Wiser, CPA
Violation: In 2017, Belden Inc., a signal transmission solutions company, improperly accelerated revenue at its subsidiary Grass Valley. Belden was informed of the risk of sales acceleration at Grass Valley when acquiring Grass Valley in 2014, but failed to devise and maintain sufficient internal accounting controls to prevent repeated acceleration of revenue at Grass Valley on a small scale in 2015 and on a widespread basis in 2017… Read More

Penalties: $65,000,000.00
Respondent: Robinhood Financial, LLC
Violation: This matter involves material misrepresentations and omissions by Robinhood relating to its revenue sources, specifically its receipt of payments from certain principal trading firms, also known as electronic market makers, for routing Robinhood customer orders to them, and relating to certain statements about the execution quality Robinhood achieved for its customers’ orders… Read More

Penalties: $125,000.00
Respondent: John G. Wright, Jr.
Violation: Wright willfully violated Section 15(b)(6)(B)(i) of the Exchange Act by becoming or being associated with a broker and participating in an offering of penny stock without the consent of the Commission in contravention of Commission Orders barring him from association with any broker or dealer and from participating in an offering of penny stock… Read More

Penalties: $10,000.00
Respondent: Jason Boling, CPA
Violation: From at least January 2017 to December 2017, Jason W. Boling the Chief Financial Officer (“CFO”) of Apex Global Brands Inc.2 (“Apex” or “the Company”), failed to ensure the accuracy of Apex’s books and records regarding its primary asset and only revenue source, trademarks held by the company… Read More

Penalties: $399,728.00
Respondent: Roger E. Dobrovodsky, Robert Todd Seth, Matthew L. Walker
Violation: The defendants marketed 1 Global securities to investors as a safe alternative to the stock market and reaped hundreds of thousands of dollars in commissions on their sales even though they were not registered as broker-dealers or associated with registered broker-dealers… Read More

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