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1558 Enforcement Actions in the U.S. over past 30 days

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FTC enforcements decreased 55% over the past 30 days

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SEC issued enforcements: $37,812,859 over the past 30 days

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50 Final Rules go into effect in the next 7 days

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49 Mortgage Lending docs published in the last 7 days

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1670 docs with extracted obligations from the last 7 days

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

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11906 new docs in pro.compliance.ai within the last 7 days

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Enforcement Report Nov 21 - 27

FTC

Penalties: N/A
Respondent: Methodist Le Bonheur Healthcare and Tenet Healthcare Corporation
Violation: Pursuant to 16 C.F.R. § 4.1(d), I state that I am eligible to practice before the Commission as a member of the Bar of the District of Columbia (Bar No. 974784)… Read More

FINRA

10 Enforcement Documents

$447,500.00 in Fines

Penalties: $120,000.00
Respondent: VIRTU Americas LLC (f/k/a KCG Americas LLC and Knight Capital Americas LLC)
Violation: Between October 2013 and April 2018, the firm violated FINRA Rules 7450 and 2010 by failing to comply with its Order Audit Trail System (OATS) reporting obligations… Read More

Penalties: $5,000.00
Respondent: Thomas Barone
Violation: In 2017, while registered with NYLIFE, Barone forged certain signatures on a whole life insurance policy application and two related documents in violation of FINRA Rule 2010… Read More

Penalties: $10,000.00
Respondent: Timothy David O’Brien
Violation: In October 2017, O’Brien placed two unauthorized trades in a customer’s account, in violation of FINRA Rule 2010… Read More

Penalties: $7,500.00
Respondent: Kevin Paul Rast
Violation: In response to FINRA requests for evidence of supervisory reviews of municipal securities trading, Rast altered and submitted documents to FINRA that gave the false appearance that he had contemporaneously reviewed those documents when he had not done so… Read More

Penalties: $5,000.00
Respondent: David T. Phillips
Violation: Between May 2017 and April 2018, Respondent participated in private securities transactions totaling $876,636, without prior disclosure to, and approval from his employer member firm… Read More

Penalties: N/A
Respondent: Joseph V. Alhadeff
Violation: In November 2020, during the course of an investigation, Alhadeff, through counsel, informed FINRA that he would not provide information and documents requested by FINRA pursuant to FINRA Rule 8210. By refusing to provide information and documents requested pursuant to Rule 8210, Alhadeff violated FINRA Rules 8210 and 2010… Read More

Penalties: $150,000.00
Respondent: Santander Investment Securities Inc.
Violation: From January 2014 through January 2019, Santander failed to capture approximately 6 million emails from 109 employee email accounts for supervisory review due to a coding error… Read More

Penalties: $5,000.00
Respondent: Joseph D. Olheiser
Violation: In anticipation of joining Raymond James, Olheiser improperly removed nonpublic personal customer information from Morgan Stanley without the customers’ knowledge or consent. As a result, Olheiser violated FINRA Rule 2010 by causing Morgan Stanley to violate the Securities and Exchange Commission’s Regulation S-P… Read More

Penalties: $75,000.00
Respondent: Wells Fargo Clearing Services, LLC
Violation: From October 1, 2016, through June 12, 2018, Respondent failed to make accurate order memoranda in violation of Rule 17a-3(a)(6) under the Securities Exchange Act of 1934 and FINRA Rules 4511 and 2010, and transmitted inaccurate reports to the Order Audit Trail System (OATS) in violation of FINRA Rules 7450 and 2010… Read More

Penalties: $5,000.00
Respondent: Daniel Hee
Violation: Between November 2015 and January 2016, Hee took customers’ nonpublic personal information (NPI) from UBS and gave it to a representative he planned to work with at the New Firm, without UBS’s or the customers’ knowledge or consent. As a result, Hee caused UBS to violate the SEC’s Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Personal Information (Regulation S-P) and, in so doing, Hee violated FINRA Rule 2010… Read More

Penalties: $70,000.00
Respondent: GTS Securities LLC
Violation: From April 23.2014 through July 31. 2015. the firm failed to obtain a locate in connection with over 26.000 proprietary short sale transactions as required by Rule 203(b)(1) of Regulation S1-10 of the Securities Exchange Act of 1934 (Exchange Act Rule 203(b)(1))… Read More

SEC

13 Enforcement Documents

$7,542,942.00 in Fines

Penalties: N/A
Respondent: Dougherty’s Pharmacy, Inc.
Violation: Dougherty’s is delinquent in its periodic filings with the Commission, having last filed a quarterly report for the period ended, March 31, 2019 (on May 20, 2019), which reported a net loss of $498,000 for the prior three months, and an annual report for the period ended December 31, 2018 (on May 6, 2019)… Read More

Penalties: $154,097.00
Respondent: Fortress Investment Management LLC. and William M. Malloy III
Violation: The Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”) against the Respondents… Read More

Penalties: $868,768.00
Respondent: Rumbaugh et al
Violation: The SEC had charged Rumbaugh and his companies with misleading RFI’s advisory clients about the terms of their investments, while concealing their self-dealing and receipt of commissions in connection with the investments they recommended… Read More

Penalties: N/A
Respondent: Computer Sciences Corporation, et al.
Violation: CSC engaged in a wide-ranging accounting and disclosure fraud that materially overstated its earnings and concealed from investors significant problems with its largest contract… Read More

Penalties: N/A
Respondent: Genesis Financial, Inc.
Violation: GFNL has failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed any periodic reports with the Commission since the period ended December 31, 2018… Read More

Penalties: $75,470.00
Respondent: Michael R. Sullivan
Violation: The SEC’s complaint alleges that in August 2018, while employed in the Product Development Department at Dick’s, Sullivan purchased Dick’s put options after learning of non-public sales information that would later be included in the company’s quarterly public earnings announcement… Read More

Penalties: N/A
Respondent: Zenergy Brands, Inc.
Violation: ZNGYQ has failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed any periodic reports with the Commission since the period ended March 31, 2019… Read More

Penalties: $6,290,510.00
Respondent: Craig Rumbaugh
Violation: The Commission’s complaint alleged that Respondent, and two companies he owns and controls Rumbaugh Financial Inc. (“RFI”), a California-registered investment adviser, and Desert Strategic Equity (“DSE”), defrauded RFI’s advisory clients by misleading them about the terms of their investments, while failing to disclose Respondent’s self-dealing and receipt of commissions in connection with those investments… Read More

Penalties: $154,097.00
Respondent: Fortress Investment Management, LLC, William M. Malloy, III
Violation: The Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”)1 against Fortress Investment Management, LLC and William M. Malloy (collectively, the “Respondents”)… Read More

Penalties: N/A
Respondent: Benja Inc., et al.
Violation: According to the SEC’s complaint, from 2018 to 2020, Andrew J. Chapin, the founder and CEO of Benja Inc., told investors that Benja was a successful online advertising platform that generated millions of dollars in revenue from popular consumer clothing brands and retailers… Read More

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