Financial Enforcement Actions | Week of Dec 30 to Jan 04

FINRA

1 Enforcement Document

$0.00 in Fines

Penalties: $0.00
Respondent: Payless Solutions
Violation: Doing business as Payless Solutions, the defendants have been illegally calling thousands of consumers nationwide – including many seniors – claiming that their program will save them at least $2,500 in a short period of time and will enable them to pay off their debts more quickly. After convincing consumers to provide their credit card information, the defendants then charged between $300 and $4,999 up-front for their worthless service. In some cases, they illegally charged consumers without their consent… Read More

FINRA

8 Enforcement Documents

$318,527.00 in Fines

Penalties: $250,000.00
Respondent: Eric S. Smith and CSSC Brokerage Services, Inc.
Violation: Respondents Eric S. Smith and CSSC Brokerage Services, Inc., knowingly made misrepresentations and omissions of material facts in connection with the sales of securities, in willful violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and in violation of FINRA Rules 2020 and 2010… Read More

Penalties: $3,500.00
Respondent: Megan Nina Weakland
Violation: From July 2006 through August 2016 (the “Relevant Period”), Weakland shared a common password with the registered financial advisor (the “FA”) for whom she worked. Weakland, with the FA’s authorization, then used the common password to log into the FA’s system “Worklist” to evidence the FA’s approval of new accounts by affixing his electronic signature when, in fact, the FA had neither seen nor reviewed the account documents for those accounts… Read More

Penalties: $5,000.00
Respondent: Paul S. Wishingrad
Violation: From November 1, 2015 through November 30, 2016, Wishingrad exercised discretion without written authorization in the accounts of four customers, in violation of NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Liju Varghese
Violation: Varghese indicated that he would not appear for on-the-record testimony that was requested pursuant to FINRA Rule 8210. As a result, Varghese violated FINRA Rules 8210 and 2010… Read More

Penalties: TBD
Respondent: Stephen C. Carver
Violation: During the period from April 2013 through November 2016, Stephen C. Carver willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (“Form U4”) to disclose three unsatisfied Internal Revenue Service (“IRS”) tax liens totaling approximately $92,000 that were filed against him on March 12, 2013, August 27, 2013, and May 14, 2015. Carver’s willful failure to timely amend his Form U4 to disclose these IRS tax liens was in contravention of Article V, Section 2(c) of the FINRA By-Laws and violated FINRA Rule 2010 and FINRA Rule 1122… Read More

Penalties: $5,000.00
Respondent: Frank Fornshell Venable III
Violation: From January 2014 through March 2016, Venable exercised discretion without written authorization in five accounts belonging to three customers, all of whom were members of the same household, in violation of NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Suresh Basnet
Violation: In December 2016, Basnet participated in two private securities transactions by two Firm customers without providing prior written notice to the Firm. Basnet thereby violated FINRA Rules 3280 and 2010… Read More

Penalties: $50,027.00
Respondent: Gary L. Pevey
Violation: Between June 2016 and August 2017 (the “Relevant Period”), Pevey violated FINRA Rules 3280 and 2010 by engaging in private securities transactions without providing notice to, or obtaining approval from, Mutual Securities… Read More

CFPB

1 Enforcement Document

$15,500,000.00 in Fines

Penalties: $15,500,000.00
Respondent: USAA Federal Savings Bank
Violation: USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers’ stop payment requests on preauthorized electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations… Read More

SEC

1 Enforcement Document

$16,000,000.00 in Fines

Penalties: $16,000,000.00
Respondent: Hertz Global Holdings, Inc. and The Hertz Corporation
Violation: From at least February 2012 through March 2014, Hertz’s public filings materially misstated pretax income because of accounting errors made in a number of business units, and over multiple reporting periods, as reflected in the Restatement that Hertz filed on July 16, 2015… Read More

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