October 15, 2022
From August 2019 to August 2020, a former Raymond James SVP signed two letters of credit and one amendment totaling $3 million. In October 2020, the SVP was RIFed out of his job. In December 2020, his former employer amended his Form U5 to alleged that the SVP had signed and issued unapproved letters of credit. All of which set the stage for a 2022 FINRA regulatory settlement whereby the former SVP was fined and suspended. Except, the more we consider the facts, the more questions arise as to why a fine and why a suspension.
I get angry when I see the Department of Justice or the Securities and Exchange Commission take ill-deserved victory laps because what gets prosecuted and who comes under the crosshairs is too often determined by whether the ensuing press releases will go viral. Prosecutors and regulators waste time and money and staff on nonsense. On half-assed studies. On useless advisory committees. On ever-dubious initiatives. On the likes of Kim Kardashian. Sadly, the amount of press often determines the amount of justice. Which brings up Kim Kardashian, yet again. Which never quite brings up the likes of Kenny Osas Okuonghae. Kenny who?
In today's featured case, we start things off in 2011, when NMS Capital Group, LLC (wholly owned by Trevor Saliba) purchased MCA Securities LLC (whose name was changed to NMS Capital Securities). By 2016, Saliba came within FINRA's crosshairs, but six years later, his case is still not fully resolved. As with far too much of what is passed off these days as Wall Street regulation, we got periods of activity, periods of inactivity, and, ultimately, things that never quite move forward or backward but spin their wheels.