How This Settlement Could Impact You A FINRA arbitration panel ordered Axos Clearing LLC to pay over $59.6 million to more than 100 claimants tied to alleged misconduct at Worden Capital Management, a broker-dealer FINRA expelled in 2021. Key Points 1Potential Clearing Firm Liability The ruling shows that clearing firms may be held responsible if… Continue reading How this $59.6 settlement impacts you

S.A. Law Group secures one of the largest publicly reported customer arbitration awards in FINRA history on behalf of more than 100 investor claimants. S.A. Law Group announced today that a FINRA arbitration panel has issued an award of approximately $59.6 million to more than 100 investor claimants in a case involving excessive trading, churning,… Continue reading SALG wins $59.6 million to more than 100 Investors against Axos Clearing

The Securities and Exchange Commission obtained an emergency order to halt an alleged ongoing offering fraud and Ponzi-like scheme by Integrated National Resources Inc. (INR), which does business as WeedGenics, and its owners, Rolf Max Hirschmann and Patrick Earl Williams, who have raised more than $60 million from investors to expand their cannabis operations, but… Continue reading SEC Shuts Down WeedGenics $60 Million Cannabis Offering Fraud

FINRA has expelled broker-dealer SW Financial for multiple violations, including making misrepresentations to customers in its sales of private placement offerings of pre-initial public offering (pre-IPO) securities, churning customer accounts, and failing to supervise its representatives. In a related settlement, FINRA suspended the firm’s co-owner and CEO, Thomas Diamante, for nine months in all capacities followed by… Continue reading FINRA Expels SW Financial, Suspends Owner and CEO Over Multiple Violations

The Securities and Exchange Commission has charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program. Unregistered Exchange, Broker, and Clearing Agency According to the SEC’s… Continue reading SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

The Securities and Exchange Commission has charged investment advisory firm Betterment LLC for material misstatements and omissions related to its automated tax loss harvesting service (TLH), failing to provide clients with notice of changes to contracts, and failing to maintain certain required books and records. To settle the charges, Betterment agreed to pay a $9 million… Continue reading SEC Charges Investment Adviser Betterment for Misstatements Concerning Tax Loss Harvesting Service

The Securities and Exchange Commission has charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed-income securities. Chatham and Melchiorre agreed to pay more than $19.3 million in combined disgorgement, prejudgment interest, and civil penalties to settle the charges. The SEC’s order finds that, from… Continue reading SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading

The Securities and Exchange Commission charged Merrill Lynch, Pierce, Fenner & Smith Incorporated for charging advisory clients more than $4 million in undisclosed foreign exchange fees for transfers to or from their accounts. To settle the charges, Merrill Lynch has agreed to pay disgorgement, prejudgment interest, and a civil penalty totaling more than $9.5 million… Continue reading SEC Charges Merrill Lynch for Failing to Disclose Foreign Exchange Fees to Clients

The Securities and Exchange Commission has charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Bittrex, Inc.’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange in connection with… Continue reading SEC Charges Crypto Asset Trading Platform Bittrex and its Former CEO for Operating an Unregistered Exchange, Broker, and Clearing Agency

Firm Also Failed to Maintain Supervisory System, Report Customer Complaints FINRA fined Webull Financial LLC $3 million for not exercising reasonable due diligence before it approved customers for options trading; not maintaining a supervisory system reasonably designed to identify and respond to customer complaints; and not reporting certain written customer complaints to FINRA as required. FINRA found… Continue reading FINRA Fines Webull $3 Million for Options Customer Approval Violations