Financial Enforcement Actions | Week of Mar 10 to Mar 15

Penalties: $10,000.00
Respondent: United Americas Bank
Violation: The authority vested in the Comptroller of the Currency by section 8(i) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(i)… Read More

Penalties: $54,725.25
Respondent: David B. Tysk
Violation: Respondent altered notes of customer communications and produced misleading evidence in arbitration… Read More

Penalties: N/A
Respondent: Mauricio de la Torre
Violation: From April 2014 through December 2014 (the “Relevant Period”), while associated with Dakota, de la Torre functioned as a principal without becoming registered as a General Securities Principal, in violation of NASD Rule 1021 and FINRA Rule 2010. He also failed to reasonably perform his supervisory duties, in violation of NASD Rules 3010(a) and 3010(b), and FINRA Rules 3110(a), 3110(b), and 2010… Read More

Penalties: $5,000.00
Respondent: Richard D. Niemann
Violation: From June 2010 through November 2017, Niemann exercised discretion without written authorization in 13 accounts belonging to 11 customers, in violation of NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Tyler J. Woddward
Violation: Failing to provide documents and information requested pursuant to FINRA Rule 8210. Failing to appear to give testimony requested pursuant to FINRA Rule 8210… Read More

Penalties: $5,000.00
Respondent: Kevin Hao Jie Zhang
Violation: In November 2016, while associated with Pruco, Zhang borrowed $5,000 from his customer in violation of FINRA Rules 3240 and 2010… Read More

Penalties: $644,000.00
Respondent: Mobile Money Code
Violation: Marketers of Mobile Money Code claimed that people could make substantial income using their “secret codes” online. In reality, these products were generic software applications for building mobile-friendly websites… Read More

Penalties: £29,107,600.00
Respondent: The Carphone Warehouse Limited
Violation: The Authority considers that between 1 December 2008 and 30 June 2015 (“the relevant period”), CPW breached Principle 3 (Management and control), Principle 6 (Customers’ interests) and Principle 9 (Customers: relationships of trust) of the Authority’s Principles for Businesses (“the Principles”)… Read More

Penalties: $165,848.90
Respondent: Beacon Investment Management LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Beacon Investment Management LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $17,363,847.29
Respondent: Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment advisers Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC in connection with mutual fund share class selection practices and the fees Respondents received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,196,279.35
Respondent: Kestra Advisory Services, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Kestra Advisory Services, LLC in connection with its mutual fund share class selection practices and the fees it, its related/affiliated broker, and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,032,702.78
Respondent: Summit Financial Group, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Summit Financial Group, Inc. in connection with its mutual fund share class selection practices and the fees it, its affiliated broker, and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $132,651.00
Respondent: First Kentucky Securities Corporation
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser First Kentucky Securities Corporation in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $3,445,264.74
Respondent: Benjamin F. Edwards & Co., Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Benjamin F. Edwards & Co., Inc. in connection with its mutual fund share class selection practices and the fees it and associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $564,267.00
Respondent: Park Avenue Securities LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Park Avenue Securities in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,037,175.98
Respondent: Stifel and Nicolaus & Company, Incorporated
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Stifel, Nicolaus & Company, Incorporated in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,852,383.10
Respondent: ProEquities, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser ProEquities, Inc. in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $9,333,516.27
Respondent: LPL Financial LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser LPL Financial LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $925,023.23
Respondent: J.J.B. Hilliard and W.L. Lyons, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser J.J.B. Hilliard, W.L. Lyons, LLC in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $11,715,395.72
Respondent: RBC Capital Markets, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser RBC Capital Markets, LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,187,562.54
Respondent: Cambridge Investment Research Advisors, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Cambridge Investment Research Advisors, Inc. in connection with its mutual fund share class selection practices and the fees it, its affiliated broker, and associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,877,048.11
Respondent: Raymond James Financial Services Advisors, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Raymond James Financial Services Advisors, Inc., in connection with its mutual fund share class selection practices and the fees its related/affiliated broker and associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $2,395,722.29
Respondent: TIAA-CREF Individual & Institutional Services, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser TIAA-CREF Individual & Institutional Services, LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $2,971,462.85
Respondent: Deutsche Bank Securities Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Deutsche Bank Securities Inc. in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,764,624.26
Respondent: Principal Securities, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Principal Securities, Inc. in connection with its mutual fund share class selection practices and the fees it and associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,171,028.31
Respondent: Woodbury Financial Services, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Woodbury Financial Services, Inc. in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,637,303.45
Respondent: Commonwealth Equity Services, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Commonwealth Equity Services, LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $5,489,119.34
Respondent: Stephens Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Stephens Inc. in connection with its mutual fund share class selection practices and the fees it and/or its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $3,528,377.00
Respondent: Oppenheimer & Co. Inc. and Oppenheimer Asset Management Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by affiliated registered investment advisers Opco and OAM in connection with mutual fund share class selection practices and the fees Respondents and their associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,134,152.00
Respondent: AXA Advisors, LLC
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser AXA Advisors, LLC in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $3,389,174.00
Respondent: Ameritas Investment Corp.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Ameritas Investment Corp. in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,666,950.18
Respondent: SSN Advisory, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser SSN Advisory, Inc. in connection with its mutual fund share class selection practices and the fees its affiliated broker and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,023,072.68
Respondent: Transamerica Financial Advisors, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Transamerica Financial Advisors, Inc. in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $3,550,660.48
Respondent: PlanMember Securities Corporation
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser PlanMember Securities Corporation in connection with its mutual fund share class selection practices and the fees its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $1,005,194.25
Respondent: First Republic Investment Management, Inc.
Violation: These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser First Republic Investment Management, Inc. in connection with its mutual fund share class selection practices and the fees it and/or its affiliated broker received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”)… Read More

Penalties: $6,097,398.00
Respondent: Lumber Liquidators Holdings, Inc.
Violation: Lumber Liquidators Holdings, Inc. (“Lumber Liquidators”) made misrepresentations to investors concerning its product testing and regulatory compliance program in connection with the sourcing and sale of laminate flooring products… Read More

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