SO YOU DO NOT HAVE AN AML AS REQUIRED BY FEDERAL LAW-LOOK WHAT HAPPENED HERE
The Financial Industry Regulatory Authority publicized penalties against three companies as well as four associated individuals that it found had failed to establish and implement adequate procedures for detecting money laundering and other suspicious transactions in violation of the Bank Secrecy Act. The enforcement actions and accompanying announcement demonstrate FINRA’s continued focus on anti-money laundering compliance programs, and why implementing effective procedures will help firms avoid regulatory actions or scrutiny.
FINRA’s announced settlements of three formal disciplinary proceedings that imposed a total of $900,000 in sanctions and suspensions on multiple securities industry professionals.
In each case there was a finding by FINRA that the firms had failed to identify red flags of money laundering activities, and therefore had failed to investigate suspicious activity and/or file a suspicious activity report. Broker-dealers and other financial institutions should consider the following examples of the red flags that went unnoticed by the firms, but that ultimately caught FINRA’s attention.
Failure to have an AML in place can be a reason for BRE or DBO to discipline your license as well.
NORTH CAROLINA FUGITIVE IN MORTGAGE FRAUD CASE ARRESTED IN VIRGINIA
Fabian David Sparrow, a fugitive in a federal mortgage fraud case was arrested Sept. 27, at an airport in Virginia. Sparrow is one of several charged with conspiracy to commit fraud and obstructing justice out of the U.S. District Court for the Western District of North Carolina. The scheme allegedly sold 1,100 homes in a five-year period through federally insured home loans. The loan applications contained false information about buyers’ ability to repay the loans and inflated the cost of the homes.
Mortgage insurance claims have mounted to more than $24 million net losses and the U.S. has lost more than $16 million in the scheme, according to court documents.
Sparrow was listed as a fugitive in August, after a co-defendant pleaded guilty in the case. A fugitive warrant for his arrest was issued Aug. 7. Sparrow was indicted Aug. 6. (tinesnws93013)
Probably will be shipped back in shackles to North Carolina. No bail because flight risk and with the amount of fraud listed and the loss, if convicted, I would say he is looking at quite a bit of time.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE. AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.