Blog by Bill Singer Esq WEEK IN REVIEW

April 1, 2023
Wall Street lawyer Aegis Frumento sees the SEC as sailing into uncharted and unfamiliar waters when it comes to social media, rap, porn, and crypto. As empathetic as Aegis may be with the SEC’s dilemma, he remains troubled by the federal regulator's efforts to charge so-called influencers with violations of the Securities Act.  As Aegis argues, the SEC's edgy enforcement efforts are a modern response using outdated laws.
I make mistakes. You make mistakes. We all make mistakes. It's part of what makes us human. In a recent regulatory settlement, FINRA concedes that a rep "mistakenly believed" he could enter certain customers' trades under his individual rep number rather than a joint number. Notwithstanding the unintentional and inadvertent nature of the rep's mistaken conduct, FINRA still charged him with "falsifying the representative code," and then imposed both a fine and a suspension.
A former UBS rep sued his former UBS investment adviser brokerage firm. Also, the former rep sued UBS Bank. The Bank didn't file an Answer or appear in the proceedings, and the arbitrators declined to make any determination against the Bank. When it came time for the former UBS rep to pay the arbitration Award rendered against him, FINRA pointed a finger at his wife's finances when he argued that he had an inability to pay the arbitration award. Depending on your view, that's an odd consistency or inconsistency.