June 26, 2021
If you run afoul of FINRA, you may be given the opportunity to enter into a regulatory settlement without admitting or denying the facts. Frankly, that's a deal that most respondents should jump at. Perhaps acknowledging that some who settle would like to offer their side of things in the published Acceptance, Waiver and Consent document, FINRA allows respondents to attach a Corrective Action Statement, which is supposed to be a "statement of demonstrable corrective steps taken to prevent future misconduct. Respondent understands that he may not deny the charges or make any statement that is inconsistent with the AWC in this Statement." BrokeAndBroker.com publisher Bill Singer is no fan of the Corrective Action Statement. He almost never recommends the option. He regularly argues against it. In a recent FINRA AWC, Bill takes the opportunity to show why FINRA's policy is misguided and inconsistent.
The thing about Glenn Capel's story is that it's not all that uncommon. It is part of the fabric of Wall Street. It is something that makes those in power in the biz uncomfortable to talk about, so they either pretend it doesn't exist, or, if you confront them, their eyes glaze over and their lips press tightly together. Some will say that there's been progress. Sure, you can say that. Talk's cheap. But too often the progress is diluted. Compromised. And more often than not, the road on that highway of progress is littered with the wrecks of careers such as Glenn Capel. The thing with victims such as Capel is that they tend to be deemed unfortunate but acceptable collateral damage. He got a few bucks from settlements of his lawsuits. Hey, good for him, but let's not get all tied up with the unfortunate stories of the likes of Glenn Capel. It's sad. Too bad. But we've made progress. Let's just move on, okay?Ummm, no, it's not okay. Never was. Still isn't. This isn't a cost-benefits analysis. This is a man's life.
After a 12-day jury trial in the United States District Court for the District of Colorado, attorney Guy M. Jean-Pierre, 60, was found guilty on 28 of 29 counts of conspiracy to commit securities fraud, wire fraud and aiding and abetting, mail fraud and aiding and abetting, securities fraud and aiding and abetting, money laundering and aiding and abetting. Jean-Pierre, was sentenced to 84 months in prison plus three years of supervised release. He appealed. He lost.