I detailed my accomplishments in a longer blog post about my experiences at Merrill Lynch and FINRA, but I also wanted to create a separate post for easier reference for prospects, clients, and readers.
Listing of My Cases
I am including links to the 17 formal cases that I investigated that resulted in $50,257,500 in fines, nine individuals suspended from the industry, two individuals barred from the industry, and three problematic firms removed from the industry1.
Each link* below sends you to the public document that details the violations and facts of each case.
This list does not numerous other cases I was lead investigator or manager on that are still in progress as either formal cases, cases in settlement negotiations, or cases going to a hearing. I strongly believe that each of these cases will result in six to seven figure fines, and that a number of these cases will result in individual suspensions and bars and at least one to two firms being barred from the industry for fraud2.
- Brown Brothers Harriman & Co. - $8,000,000 fine and one individual, Harold A. Crawford (CRD No. 5326696), was suspended six months and personally fined $25,000 (Case Number 2013035821401).
- BMA Securities - $325,000 fine and one individual, Burt Martin Arnold (CRD No. 2306999), was suspended for one month and personally fined $20,000 (Case Number 2010023220502).
- Capital Guardian, LLC - $125,000 fine and one individual, Javier Tellez (CRD No. 4589012) was suspended for three months and personally fined $5,000 (Case Number 2013035775302).
- Convergex Execution Solutions LLC - $3,000,000 fine (Case Number 2014040667001).
- Credit Suisse Securities LLC - $16,500,000 fine (Case Number 2013038726101).
- First Allied Securities - One individual, Daniel Grieco (CRD No. 1222747), was suspended one month and personally fined $7,500 (Case Number 2013035076201).
- Geoffrey Richards Securities Corp. - $40,000 fine (Case Number 2012030485701).
- Glendale Securities - $155,000 fine, and three individuals were suspended. One individual, Albert Raymond Laubenstein (CRD No. 303462), was suspended for 18 months and 15 days and personally fined $25,000. One individual, Paul Eric Flesche (CRD No. 3277904), was suspended for one month, and jointly and severally fined with Glendale for $30,000. One individual, Huanwei Huang (CRD No. 3268328), was suspended for ten days and fined $5,000. This is based on an OHO Decision which FINRA has appealed (Case Number 2016049565901).
- Interactive Brokers - $15,000,000 fine for widespread AML failures. This was part of a $38 million joint settlement as the SEC and CFTC joined our case and both fined Interactive Brokers $11.5 million for failure to report Suspicious Activity Reports. (Case Number 2015047770301) (AWC here).
- Merriman Capital, Inc. - Expelled from the industry.
- Scottsdale Capital Advisors Corporation - $1,500,000 fine, one individual, John Hurry (CRD No. 2146449), barred in all capacities, and two individuals, Timothy Brian DiBlasi (CRD No. 4623652) and Darrel Michael Cruz (CRD No. 2450344), each suspended for two years and each personally fined $50,000 (Case Number 2014041724601 - OHO Decision and upon appeal by Scottsdale Capital, NAC decision which held all findings).
- Spencer Edwards - FINRA canceled Spencer Edwards license to operate due to its failure to pay membership fees to FINRA. Spencer Edwards had another pending fine of $495,000 and a 45 business-day suspension after a hearing decision of more egregious violations (Case Number 2014041862701).
- Tradestation Securities, Inc. - $200,000 fine (Case Number 2010023934201).
- UBS Financial Services and UBS Securities - $5,000,000 fine (Case Number 2012034427001).
- Underhill Securities and Frank Underhill - The firm withdrew its registration in the financial industry and Frank Underhill was barred in all capacities.
- VectorGlobal WMG, Inc. - $125,000 fine (Case Number 2011029215701).
- Wilson-Davis & Co, James C. Snow, Jr., Lyle Wesley Davis, Byron Bert Barkley, and Craig Stanton Norton - Complaint alleging fraud and willful stock market manipulation, unreasonable anti-money laundering system, deficient supervisory system, and providing false and misleading information. Any suspensions, bars, or fines, if applicable, are pending a settlement or hearing (Case Number 2016048837401).
Time Well Spent
Overall, my seven years at FINRA were an incredible experience where I was constantly challenged to produce results and rid the industry of bad actors and firms, and I can only thank my bosses and teammates for teaching me and leading me throughout this entire journey.
I worked to protect the financial markets for seven years, and I hope that my results and unblemished record give my potential clients reason to trust my integrity and help remove the corrupt, unethical, and unjust people inhabiting their financial world.
Please contact BrightLights for your free consultation.
1 - The reason I highlight formal cases as opposed to all of the informal cases I worked on is that the amount of work on a formal case is notably larger than an informal case. Additionally, a formal case is significantly harder to accomplish because it involves developing a case from nothing by obtaining evidence of wrongdoing, deposing all of the individuals involved and/or responsible, and then drafting a report to our attorneys detailing the entire investigation and what rules were allegedly broken. A formal case usually take years to cross the finish line.
2 - When the results of these cases become public, I will update this post accordingly.