Securities Fraud Blog | Find out if your broker is liable for your losses

TAG | CMG

Aug/10

22

FINRA Expells Firm and Sanctions Individual

 
CMG Institutional Trading, LLC (CRD® #47264, Chicago, Illinois) and Shawn Derrick Baldwin (CRD #4281564, Registered Principal, Chicago, Illinois).
 
 It was reported on the FINRA website that the firm was expelled from FINRA® membership and Baldwin was barred from association with any FINRA member in any capacity. The National Adjudicatory Council (NAC) imposed the sanctions following appeal of an Office of Hearing Officers (OHO) decision. The sanctions were based on findings that the firm, acting through Baldwin, participated in securities related activities without employing a qualified municipal securities principal; failed to timely file quarterly lists of issuers with which it engaged in a municipal securities business; and failed to adopt, maintain and enforce written supervisory procedures reasonably designed to ensure that the conduct of the broker and associated persons in municipal securities activities are in compliance with Municipal Securities and Rulemaking Board (MSRB) rules and that the procedures shall codify the broker’s supervisory system for ensuring compliance. The findings stated that the firm permitted Baldwin to engage in its securities business even though his registration was inactive because he had failed to complete a continuing education course. The findings also stated that the firm, acting through Baldwin, had an inadequate Anti-Money Laundering (AML) compliance program, in that it failed to verify customer identification information, conduct independent testing of its AML program, designate a person to transmit contact information to FINRA and to provide AML training for two years. The findings also included that the firm, acting through Baldwin, failed to timely create and maintain a business continuity plan and engaged in securities transactions without a qualified financial and operations principal (FINOP).  
 Also, FINRA found that the firm, acting through Baldwin, conducted a securities business while its net capital was below the required minimum; failed to prepare an accurate general ledger, trial balances and books and records; and failed to file an annual audit report and a quarterly Financial and Operational Combined Uniform Single (FOCUS that the firm and Baldwin failed to file an application for approval of a material change in its business operations even though it participated in an offering as an underwriter on a firm commitment basis, and disseminated sales literature that contained numerous inaccuracies and misrepresentations. 

  (FINRA Case #2006006890801) This information was obtained on the FINRA website. 

If you feel you have become an alleged victim of  CMG Institutional Trading, or Derrick Baldwin, call a FINRA Securities arbitration lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA and the NFA.

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