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FINRA expels Florida brokerage, bars compliance chief over private placements, AML flaws

Nov 20 2012 Stuart Gittleman, Compliance Complete

The Financial Industry Regulatory Association has expelled a broker-dealer based in North Miami Beach, Florida and barred its chief compliance officer over disclosure and due diligence violations in connection with four private placement offerings, and inadequate anti-money laundering policies and procedures. The firm, Basis Financial LLC, and Armen Karapetyan, its owner and CCO, consented to the sanctions without admitting or denying FINRA's findings, as did Gabriel Gennady Goldfine, a registered representative, who agreed to a $37,500 fine and a one-year suspension. FINRA found that the respondents made material misrepresentations and omissions, and engaged in other misconduct in connection with the sale of private placement offerings. They failed to disclose their receipt of substantial compensation in the form of commissions, fees, mark-ups, salary or loans. They also failed to disclose the issuers' true financial condition and that the proceeds of the offerings would be used

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