The Financial Industry Regulatory Authority on Wednesday charged Roman Sledziejowski, the chief executive and chief compliance officer of TWS Financial, LLC, a Brooklyn-based broker-dealer, with defrauding customers through an outside business activity.
The case demonstrates that a decade after rogue broker Frank Gruttadauria's misconduct cast a spotlight on lax supervisory controls at brokerages and forced stricter standards, financial professionals still face inherent difficulties in adequately supervising themselves, and should avoid trying to do so.
Gruttadauria was a manager for brokerages including SG Cowan and Lehman Brothers who controlled his purported supervisors' compensation and, with little or no supervision, was able to steal more than $100 million from customer accounts. He was eventually convicted and imprisoned, and Cowan and Lehman paid fines. The compliance gap spurred the Securities and Exchange Commission and National Association of Securities Dealers to require
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