In March, 2020, FINRA fined $45,000 and censured a retail broker for lack of procedures to identify red-flags related to low-priced securities trading. Similarly, disciplinary actions were brought against 2 introducing brokers in 2018 where both were fined heavily, over $1M, for not having supervision and oversight of low-priced securities to detect pump-n-dump schemes, and subsequently not filing required Suspicious Activity reports as stated in the US Patriot Act.
George and I discuss these cases and the red-flags firms should be aware of.
Links related to each of the cases discussed:
- Arive Capital
- Aegis FINRA and SEC
- Chardan Capital Markets
