Atlanta firm alerts authorities about big loss on 'unauthorized' trades

Atlanta firm alerts authorities about big loss on 'unauthorized' trades
IFS Securities says it fired the senior executive responsible for the money-losing transactions.
AUG 15, 2019

IFS Securities, an Atlanta-based broker-dealer, said it suffered "substantial losses" because of what it called unauthorized transactions made by one of its highest-ranking employees, prompting the company to alert federal regulators. The firm said in a statement to Bloomberg News that it fired the banker, whom it didn't name but described as "one of IFS Securities' most trusted senior employees." The firm said it also alerted the Securities and Exchange Commission, the Financial Industry Regulatory Authority Inc. and the Federal Bureau of Investigation, and is cooperating with those agencies. [Recommended video: Deploying fintech to improve the client experience and prevent fraud]​ IFS didn't disclose the nature of the money-losing trades, though it said they didn't involve customers' assets. The company said it "will be unable to make any detailed public comment concerning recent events, given the complexity of the situation and the existence of ongoing investigations that it understands have commenced." Judith Burns, a spokeswoman for the SEC, declined to comment. Messages left with spokespeople for the FBI and Finra weren't immediately returned. (More: Former IFS broker barred for fraudulent private deals)

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income