In a FINRA disciplinary proceeding, the Department of Enforcement alleged that two former general securities representatives failed to report private securities transactions and outside business activities ("OBAs").
According to FINRA, the individuals failed to disclose to their employers (i) OBAs, (i) private securities transactions totaling over $9.9 million and (ii) outside accounts that they had opened with other broker-dealers.
Separately, FINRA claimed that one of the individuals (i) deposited cash into multiple bank accounts in amounts of less than $10,000 in order to evade Currency Transaction Reporting requirements applicable to the banks, and (ii) provided false information to a broker-dealer in order to gain access to a line of credit.
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