StateTrust Investments Ordered to Pay $1.5 Million in Fines and Restitution for Excessive Markups and Markdowns in Corporate Bond Transactions Involving Affiliated Companies

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StateTrust Investments Ordered to Pay $1.5 Million in Fines and Restitution for Excessive Markups and Markdowns in Corporate Bond Transactions Involving Affiliated Companies The Financial Industry Regulatory Authority (FINRA) has imposed sanctions against StateTrust Investments, Inc. and its head trader, Jose Luis Turnes, for charging customers unfair prices in corporate fixed income transactions.  According to FINRA’s June 26, 2013, news release, StateTrust changed excessive markups and markdowns as much as 23 percent above the prevail...Read More

CFTC Gets Aggressive Against Misuse of Customer Segregated Fund Accounts

Block & Landsman by Block & Landsman

The Commodity Futures Trading Commission, the federal agency that regulates the commodity markets, has embarked on an aggressive effort to hold individuals and banks accountable for assisting in the misuse of segregated customer funds by futures commission merchants.  The CFTC’s actions come in response to the stunning failure of two of the nation’s largest FCMs, MF Global and Peregrine Financial Group. Both firms engaged in conduct which, their customers discovered too late, had caused the loss of hundreds of millions of dollars the in...Read More

U.S. Supreme Court Enforces Arbitration Provision’s Ban on Class Action Claims

Block & Landsman by Block & Landsman

In a ruling that continues a recent trend restricting the use of class action lawsuits to address the collective claims of similarly situated plaintiffs, the United States Supreme Court has ruled that restaurant owners were precluded by an arbitration clause in their American Express agreements from pursuing arbitration claims against the financial institution on a class-wide basis. The plaintiffs in the putative class action case, American Express v. Italian Colors Restaurant, alleged that American Express forced merchants to accept its hi...Read More

Wells Fargo and Banc of America Compelled to Pay More Than $5 Million for Selling Unsuitable Investments in Floating-Rate Bank Loan funds.

Block & Landsman by Block & Landsman

Wells Fargo and Banc of America Compelled to Pay More Than $5 Million for Selling Unsuitable Investments in Floating-Rate Bank Loan funds. On June 4, 2013, the Financial Industry Regulatory Authority (FINRA) announced sanctions imposed against Wells Fargo Advisors and Banc of America (through its successor Merrill Lynch, Pierce, Fenner & Smith) to reimburse a total of $3.1 million to more than 450 customers for recommending unsuitable floating-rate bank loan funds.  In addition, FINRA also imposed fines against the firms of more than $2...Read More