- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2022-09-23T14:32:00
A broker-dealer unit of Raymond James Financial agreed to pay $500,000 as part of a settlement with the Securities and Exchange Commission (SEC) for alleged supervisory failures that included the input of a misinformed compliance officer.
Raymond James & Associates did not clearly communicate to compliance and supervisory staff procedures regarding a group the business formed to help protect senior and at-risk clients, resulting in a compliance officer misunderstanding the purpose of the group’s investigations, the SEC alleged in its order. As a result, activities by a former registered representative at the firm, Frederick Stow, who was misappropriating funds from two elderly customers’ accounts were allowed to continue, according to the agency.
Stow, who eventually admitted his misconduct, was sentenced to five years in prison by the Department of Justice in May 2021 after pleading guilty to securities fraud, wire fraud, and aggravated identity theft.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
Raymond James & Associates and its subsidiary agreed to pay more than $1.9 million to settle allegations levied by the Financial Industry Regulatory Authority that it didn’t have an effective system to handle customer complaints, along with millions of direct mutual fund transactions not reasonably being supervised.
Atmos Energy Corporation announced that Jessica Bateman Pulliam has been appointed to the position of senior vice president, general counsel and corporate secretary, effective Jan. 1.
Healthcare Realty Trust Incorporated announced that Andrew Loope, senior vice president, corporate counsel and secretary, will be promoted to executive vice president, general counsel, and secretary.
A lack of supervision and internal controls at Morgan Stanley Smith Barney allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said in charging the firm.
A subsidiary of McKinsey & Co. will pay nearly $123 million to the Department of Justice to settle allegations that it bribed officials in South Africa to win consulting contracts.
A defamation lawsuit filed by a whistleblower against USAA, which a Florida judge recently dismissed on a technicality, revealed in public court records an estimated 400,000 violations of the Military Lending Act by USAA Federal Savings Bank (USAA Bank), an indirect wholly owned subsidiary of USAA.
