Compliance & Ethics

The Financial Industry Regulatory Authority (FINRA) has announced a significant penalty against SoFi Securities LLC, amounting to $1.1 million, for multiple violations related to its customer identification and identity theft prevention programs. SoFi Securities, headquartered in San Francisco, California, and a member of FINRA since 2011, was found to have inadequately established and maintained protocols for its cash management brokerage account, SoFi Money, resulting in vulnerabilities to fraudulent activities.

The Securities and Exchange Commission (SEC) has leveled charges against audit firm BF Borgers and its owner, Benjamin F. Borgers. The SEC alleges "deliberate and systemic failures" by the firm to maintain compliance with the Public Company Accounting Oversight Board (PCAOB) in over 1,500 SEC filings.

It was reported recently that Toronto-Dominion Bank has taken an initial $450 million provision for potential penalties stemming from an investigation into weaknesses in its anti-money laundering procedures at its U.S. operations.

Home retailer Williams-Sonoma Inc. has agreed to pay a record $3.17 million civil penalty to settle charges that it repeatedly violated a 2020 Federal Trade Commission order requiring truthful "Made in USA" product claims.

The Federal Communications Commission has levied major fines totaling nearly $200 million against the nation's top wireless carriers for improperly sharing customers' real-time location data without consent.

TD Ameritrade, the brokerage firm now owned by Charles Schwab, agreed to pay a $600,000 fine from the Financial Industry Regulatory Authority (FINRA) over deficiencies in its automated system for approving customers for options trading.

A federal court has ordered Red Rock Secured LLC, CEO Sean L. Kelly and senior salesperson Anthony “Tony” Spencer to pay over $56 million after defrauding customers in a nationwide precious metals investment scam. The Commodity Futures Trading Commission announced that Judge R. Gary Klausner of the U.S. District Court for the Central District of California entered a consent order on April 23rd finding the defendants liable for fraudulent misrepresentations and unlawful investment advice referenced to the sales of precious metals.