The Financial Industry Regulatory Authority has sanctioned the chief compliance and anti-money laundering compliance officer of two affiliated firms over their failure to monitor for, detect and investigate suspicious transactions despite multiple "red flags."
Without admitting or denying FINRA's allegations, the executive, Joseph Gasper Messina, consented to a $15,000 fine and a six-month suspension in a principal capacity.
FINRA found that Messina violated NASD rules 3011(a), (b) and (c), and 2110, and FINRA rules 3310(a), (b) and (c), and 2010.
Messina's violations occurred at two broker-dealers where he was a principal, Rushmore Capital, a retail firm, and Domestic Securities, a market-maker that FINRA expelled from membership in October 2011 for failing to pay fines and/or costs. Both firms shared a common ownership and many of the same registered representatives and principals.
For about a year through September 2010, Rushmore, by Messina and Harry Martin Lefkowitz, another
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.
