Blog by Bill Singer, Esq. WEEK IN REVIEW

September 30, 2017

FINRA Doesn't Like Dinar Time

Sometimes, ten people read the same thing but only one spots the typo or notices an inconsistency. Today's Blog offers insights into how our publisher Bill Singer, Esq., sees things and interprets them differently than others. It's a fun and interesting exploration of how a veteran industry lawyer dissects regulations and interprets purported facts. For some of you, it may all come off as little more than nit-pickin'. That's okay, Bill enjoys his gadfly role as a fastidious pain in the ass. For others, the vivisection of a recent FINRA Outside Business Activities settlement may open your eyes and give you pause before throwing in the towel and agreeing that you are guilty as charged. READ

Child Endangerment Defendant Barred By FINRA

At the heart of Wall Street regulation is the inescapable fact that we are dealing with human beings. To read through the Financial Industry Regulatory Authority's disciplinary docket is to experience a spectrum of idiocy that runs from seemingly inadvertent goofs to detestable acts that cause inestimable harm. When observing the tawdry human pageant reported by FINRA, we often come upon cases where we applaud the regulator's actions and sanctions but, nonetheless, are saddened by the circumstances of a Respondent who is clearly struggling with life, stumbling, and making bad choices. We can't always know what prompts misconduct. We can't always understand or appreciate the stress that sets some folks down the wrong path. That being said, our first concern must always be for the victims. A recent FINRA disciplinary settlement highlights many of these factors. READ

FINRA Bars Rep For Arbitration Perjury

In today's Blog, publisher Bill Singer, Esq. dissects a FINRA arbitration and two FINRA regulatory settlements involving a father and son. What ties these matters together is an allegation by FINRA that the father had lied under oath during his arbitration case against former employers and associates. This is a rare, a very rare, case in which FINRA regulatory action is taken against an arbitration Claimant/witness for lying under oath.

If FINRA the self-regulator is now going to act as a lie detector and bar registered representatives for perjury during arbitrations (as should certainly be the consequence), then such regulatory action will likely influence arbitration settlements and may also prompt more parties to demand regulatory referrals from arbitrators. Assuming that FINRA is now placing such arbitration-perjury matters on its regulatory agenda, the self-regulator must pursue such allegations with equal zeal against its member firms, who are often accused of lying during customer and industry arbitrations. Similarly, given FINRA's inability to "bar" public customers for perjury, the regulator must commit to referring such findings to local, state, and/or federal prosecutors. READ

How Long Has This Been Going On? A Case Of Delayed FINRA Regulation

How long is too long? That's a very fair question to ask of any Wall Street regulator when it comes to the amount of time that elapses between when they are on notice of misconduct and until such time as they either settle their case or file charges. In a recent FINRA regulatory settlement, we are left with troubling questions about why Wall Street's self-regulator apparently sat on its butt for some four years after a member firm had fired a registered rep for several instances of regulatory and compliance violations. READ

UBS Employee Padussis Wins Best Left Unsaid Arbitration

Today's featured intra-industry FINRA arbitration involves this one guy, who's the Claimant, suing this other guy, who's the Respondent, and the Respondent wants the arbitration stayed because UBS is appealing something involving the Claimant but the FINRA arbitration goes ahead and the Claimant fellow wins a whopping award against the Respondent fellow. There must have been a lot of bad blood between the two parties because the Claimant wanted the Respondent to be ordered to attend a business ethics course.

By the way, did you watch that sporting event on Sunday in which that one team was losing against that other team and, wow, what a stunning comeback at the end of the game!