Finra fines 3 firms $900K for suspicious trading

Money laundering, lack of supervision cited by regulatory agency.
MAY 12, 2013
The Financial Industry Regulatory Authority Inc. last Wednesday fined three financial companies a total of $900,000 for failing to stop money laundering and other suspicious transactions. Officials at the firms were fined a total of $100,000. The organization fined Atlas One Financial Group LLC $350,000 and also fined its former chief compliance officer, Napoleon Arturo Aponte, $25,000 and suspended him for three months. Finra hit Firstrade Securities Inc. with a $300,000 fine and World Trade Financial Corp. with a $250,000 fine. At World Trade Financial, president and owner Rodney Michel was fined $35,000 and suspended for four months, while chief compliance officer Frank Brickell was fined $40,000 and suspended for nine months. Minority owner Jason Adams was fined $5,000 and suspended for three months. The firms and executives settled with Finra without admitting or denying the charges. Company officials were not available for comment. Atlas One failed to detect suspicious activities in several accounts between February 2007 and May 2011, despite the fact that the Justice Department had opened a money-laundering investigation in 2007 on six accounts controlled by one customer, according to Finra. The company did not look into any other accounts — with the same Costa Rican mailing address — that were not involved in the Justice review. Finra said that Firstrade failed to detect suspicious trading activity by Chinese issuers — a market in which the company specializes.

'MISUSE AND ABUSE'

World Trade Financial and its executives were targeted by Finra for not implementing and enforcing a supervisory system for a penny stock operation that generated more than $61 million between March 2009 and August 2011. “Today's actions reinforce Finra's continued focus on firms' ability to identify and respond to potential misuse and abuse of the markets,” Brad Bennett, Finra's executive vice president and chief of enforcement, said in a statement. “Firms must have adequate anti-money-laundering and supervisory systems in place to detect and report suspicious transactions.”

Latest News

Retirement advisors have a major small business opportunity
Retirement advisors have a major small business opportunity

State mandates and plan complexity are opening doors for financial advisors in the 401 market.

Most pre-retirees are planning without a planner - and it shows
Most pre-retirees are planning without a planner - and it shows

New LIMRA data reveal a stubborn advice gap that financial professionals are well-positioned to close.

Treasury hits BofA with $1.2B fine over money laundering violations
Treasury hits BofA with $1.2B fine over money laundering violations

“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” said Treasury Secretary Scott Bessent.

The hidden cost of growing a firm without intention
The hidden cost of growing a firm without intention

To build a truly self-sustaining practice, enterprising advisors have to start with a vision of what they want to be – and accept the realities that come with building toward it.

Waverly, Apella buy $412M in RIA assets across Oregon, Northeast
Waverly, Apella buy $412M in RIA assets across Oregon, Northeast

Serial acquirers add a 35-year-old Oregon wealth manager and a New York practice focused on women navigating life transitions.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor