Regulation & Compliance

Something’s got to give for compliance teams to effectively manage their snowballing workload and spiraling costs.

According to one expert, President-elect Donald Trump’s SEC Chair nominee may pursue cases where there is “fraud or harm” to investors rather than situations where firms fail to follow compliance policies.

The commission charged South Carolina-based former rep Eric Cobb with defrauding clients while working for SeaCrest Wealth Management. The firm paid $375,000 to settle the charges.

According to charges filed by the Securities and Exchange Commission and the Justice Department, a trio of Nigerian nationals stole more than $2.9 million from at least 28 investors.

The regulator said the ruling in the case concerning Utah-based brokerage Alpine Securities won’t affect day-to-day operations. However, those closely watching the case believe it could challenge FINRA’s legal foundation.

The SEC sued Leech, alleging he allocated trades hours after executing them, often waiting until the end of the trading day or afterward.

According to the commission, James David Burleson’s scheme caused over $3 million in losses for his clients and a 26.5% positive return for himself. The SEC argues the probability that divergence occurred by chance was “less than one in a million.”