On behalf of Girard Bengali, APC on Monday, April 22, 2019.
The Financial Industry Regulatory Authority (FINRA) has recently banned a trader involved in a $1.5 million Bitcoin scheme. The trader told investors that they could buy the Bitcoin at a discount and receive higher than normal returns. According to FINRA, the money was sent to the man’s brother in Europe, and the Colorado Division of Securities says that the brother was a wanted fugitive. A consent order was signed on Jan. 8, 2019, but the trader did not admit that he was guilty.
However, he did acknowledge that he had received requests for documents from FINRAbut did not necessarily provide the records that the group sought. He also claimed that he was deluded by his brother, and the consent letter did not say that he took part in a scheme to defraud investors.
In addition to the ban that the organization imposed, the trader in question lost his job with First Financial Equity for failure to address FINRA concerns. According to the Securities and Exchange Commission (SEC), it is always a good idea to do background checks on prospective financial advisers. A portion of the $1.5 million taken from investors was returned.
Financial professionals who are charged with securities fraud or face other allegations of misconduct may benefit from speaking with an attorney. An attorney may be able to help an individual avoid sanctions from regulators or criminal penalties. This may be done by assisting an individual in finding and submitting documents or by reviewing requests from regulators to ensure that a person is able to fully comply with it. Taking such steps may allow a financial professional to obtain a favorable outcome in their matter.