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July 2015 Archives

Former Compliance Officer Faces up to 20 years in Prison

The Securities and Exchange Commission (SEC) has charged William Quigley, a former chief compliance officer of Westbury, New York based brokerage firm Trident Partners, Ltd, with fraud. According to the SEC, Quigley solicited foreign investors to invest in well-know companies along with a few start-ups and then used the money for his own personal use. Over the course of a decade, Quigley allegedly siphoned $800,000 of investors' money into his personal accounts by sending investors false account statements. Quigley was indicted on charges of wire fraud and money laundering. He faces up to twenty years in prison.

Former Frederick Attorney Faces a Maximum of 23 years

Former Frederick attorney, Richard A. Brennan, is now facing jail time after pleading guilty to mail fraud and tax charges. Brennan first opened his practice in 2006 with the main focus of providing clients with debt-settlement services. Brennan allegedly misappropriated clients' funds intended to pay off their debts, and used the money for his own needs. Over a three year period this caused his clients to lose about $2.9 million. In 2007, the Maryland Attorney General's Consumer Protection Division investigated him for these allegations. The Attorney General and Brennan came to a settlement in which he would pay $200,000 in fines and costs and repay clients harmed by his scheme. Unfortunately, Brennan never followed the terms of the settlement and never returned any of the money to his clients.

LPL Hit with $11.7 million Fine

LPL Financial was fined $11.7 million by the Financial Industry Regulatory Authority (FINRA) for supervisory failures. FINRA believes that the supervisory failures began in 2007 when LPL allegedly did not properly supervise the sale of complex products. FINRA also alleges that the system LPL had in place to review customer accounts was deficient which caused 67,000 customers to not receive 14 million trade confirmations.

Broker to Celebs Barred by FINRA

Aaron Parthemer, a Wells Fargo financial advisor to pro athletes and celebrities, has been banned from the securities industry. The Financial Industry Regulatory Authority (FINRA) claimed that Parthemer failed to disclose multiple outside business activities including running a popular Miami nightclub, Club Play. FINRA believes that Parthemer solicited his clients to invest in the nightclub and made unapproved loans involving the club. Parthemer also allegedly solicited more than a half dozen pro athlete clients to invest over $3 million in an internet branding company that was operated by a close friend. Finally, FINRA claims that Parthemer supplied false information in connection with its investigation.

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