Articles Tagged with Supervisory Violations

The Financial Industry Regulatory Authority (“FINRA”) has suspended former Worden Capital Management LLC supervisor Henry Bones II.  Mr. Bones consented to a two-month suspension from associating with any FINRA member in all principal capacities after FINRA alleged that he failed to reasonably supervise a former broker, Christopher Orlando, that excessively traded ten customer accounts.

Earlier this year, FINRA has barred Christopher Orlando from the securities industry for excessively trading his customers’ accounts.   In December 2020, Worden Capital Management LLC was sanctioned more than $1.5 million by FINRA for, among other things, failing to establish, maintain and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to excessive trading.

Mr. Bones, who was associated with Worden Capital Management LLC from November 2016 to December 2019, has a history of associations with firms that have been expelled by FINRA.  He is currently registered with SW Financial in New York, NY.

Aegis Capital (“Aegis”) was fined $80,000 and censured by FINRA over multiple FINRA and MSRB Rules violations. The firm was also ordered to pay restitution of $43,912 to customers.

The firm has a long history of sanctions. In 2017, Aegis was included in a Reuters study that analyzed FINRA data and identified 48 firms whose brokers have been flagged for serious incidents. The Reuters’ analysis showed that Aegis Capital had 39% of its brokers with at least one of the most serious red flags, per the study, on their public disclosure.

In August 2015, FINRA fined Aegis $950,000 for improperly selling unregistered penny stocks and for related supervisory failures and for failing to implement anti-money laundering (AML) policies and procedures.

Iorio Altamirano LLP is investigating The GMS Group LLC (“GMS”) after the firm was censured and fined $90,000 for charging unfair and unreasonable prices to customers in 49 transactions involving below investment grade municipal bonds. As part of the AWC, GMS was also ordered to pay approximately $42,446 plus interest in restitution to customers.

If you have lost money with GMS, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

GMS and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on February 5, 2021, over the following findings:

Contact Information