Wall Street's industry funded regulator has expelled Hudson Valley Capital management and its chief executive officer from the securities industry for defrauding its clearing firm and customers to cover losses from his day trading.
The Financial Industry Regulatory Authority, in an announcement Monday, said that Hudson Valley, a brokerage based in Croton-on-Hudson, New York, and its chief executive officer, Mark Gillis, used one of the firm's accounts to "improperly day trade" millions of dollars in stock.
FINRA's action on Thursday illustrates how the lack of an independent compliance officer, a situation common at many small brokerages can lead to the mishandling of customer money.
Gillis, one of two FINRA-licensed people to work at Hudson Valley, had other titles at the firm, including chief compliance officer and chief financial officer.
He did not return a call requesting comment. A phone number listed for Hudson Valley was not working on Thursday
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