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FINRA publishes additional guidance on suitability rule

In November 2010, the Securities and Exchange Commission (SEC) approved FINRA’s new suitability rule, FINRA Rule 2111. FINRA then issued Regulatory Notice 11-02, which announced the SEC’s approval of the new rule and discussed its requirements. FINRA also issued Regulatory Notice 11-25, which offered further guidance on the rule and announced a new implementation date […]

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SEC targets Apartments America, LLC

On May 10, 2012, the Securities and Exchange Commission charged a California-based real estate company and its owners with defrauding potential investors by boasting a false company track record to tout their purported real estate expertise while concealing the bankruptcy of their previous company. The SEC alleges that Michael J. Stewart, John J. Packard, and […]

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Georgia man consents to insider trading charges

On May 10, 2012, the U.S. District Court for the Northern District of Georgia entered a consent order requiring, among other things, that Defendant Dr. Bobby V. Khan, a Georgia-based doctor, pay more than double the amount of his trading profits obtained through alleged insider trading. The Commission filed charges against Dr. Bobby V. Khan […]

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SEC charges Arizona resident

The Securities and Exchange Commission (“Commission”) filed a civil injunctive action in Atlanta, Georgia on May 8, 2102, alleging that Gerald D. Kegley (“Kegley”) and the company he operates, Prism Financial Services, LLC (“Prism”), participated in a fraudulent “Prime Bank” scheme that violated the antifraud and securities and broker dealer registration provisions of the federal […]

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FINRA fines firms $9 million for leveraged ETFs

The Financial Industry Regulatory Authority, or Finra, has ordered Citigroup Inc. (C), Morgan Stanley (MS), UBS AG (UBS) and Wells Fargo & Co. (WFC) to pay a combined $9.1 million for allegedly improper sales of leveraged and inverse exchange-traded funds. Wall Street’s self-regulator fined the companies a total of more than $7.3 million and also […]

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