Author Archive: Christopher D. Warren

Brokers: Pay Attention to Reg BI Obligations

By Christopher D. Warren / June 22, 2022
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As a broker, if you were not aware of Regulation Best Interest (Reg BI) before, you certainly should be now. The SEC recently charged broker-dealer firm Western International Securities Inc. for violating Reg BI obligations after it sold over $13 million of L bonds to retirees and investors. The SEC complaint stated that the investors…

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Updated Cannabis Regulations Released

By Christopher D. Warren / June 8, 2022
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Cannabis is officially legal in New York State, and with that comes various regulations that will require the help of an attorney. NYS marijuana regulators recently took another step towards creating a regulatory framework for cannabis by approving a series of proposed rules for packaging, labeling, advertising, and testing requirements. Some of these requirements include…

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FINRA Expresses Concerns Regarding Expungement Process

By Christopher D. Warren / May 24, 2022
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FINRA recently released a statement highlighting its concerns about the current expungement process, with reforms expected to come this year. FINRA addressed its concerns regarding expungement reform in 2020 after submitting a plan to create a roster of specially trained arbitrators; however, FINRA withdrew this request last year.  According to FINRA, the new proposal will be…

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Man Charged with Fraud for Role in $59 Million Crypto Scheme

By Christopher D. Warren / May 23, 2022
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A New York man was charged with fraud for his role in scamming investors out of $59 million in a crypto investment scheme. The defendant, Eddy Alexandre used the investors’ money to contribute to his own bank account, and spent their money on personal items such as a $175,000 luxury vehicle. Christopher Warren, Managing Partner…

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SEC Sues Firm for Raising $410 Million in Pre IPO Linked Fraud Case

By Christopher D. Warren / May 18, 2022
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StraightPath Venture Partners has had its assets frozen by the Securities and Exchange Commission (SEC) due to securities violations, including allegedly selling pre-initial public offering (IPO) shares they did not own, pocketing undisclosed fees, and commingling investor funds, resulting in Ponzi scheme-like payments. The SEC charged the defendants with violating antifraud and provisions of the federal securities…

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SEC To Expand Crypto Assets and Cyber Unit

By Christopher D. Warren / May 4, 2022
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As the crypto financial market evolves and develops, the Securities and Exchange Commission (SEC) is trying to catch up. Yesterday, the SEC announced 20 new positions designated to protect crypto investors from cyber-related threats and is expected to expand to more than 50 as the cryptocurrency market outperforms broad equity indices. As the SEC amps…

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FINRA Regulatory Notice Regarding Complex Products

By Christopher D. Warren / April 26, 2022
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FINRA has released a new regulatory notice “reminding members of their sales practice obligations for complex products and options and to solicit comments on effective practices and rule enhancements.” Many ETF shareholders are wary of this new notice, stating that it is vague and has the potential to prevent innovation and investor recommendations. However, FINRA…

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Morgan Stanley in FINRA Arbitration Against Investment Firm

By Christopher D. Warren / April 21, 2022
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Disruptive Technologies, an investor with Morgan Stanley, alleged the firm leaked information regarding a large sale of Palantir Technology shares. The SEC and DOJ are looking into whether Wall Street firms, such as Morgan Stanely, favored specific clients by giving them inside information in block trades. Allegedly, the leak cost Disruptive Technologies tens of millions…

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SEC Charges Individuals in a $500 Million Ponzi Scheme

By Christopher D. Warren / April 19, 2022
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Last week, the SEC charged several individuals in a half a billion-dollar Ponzi Scheme that involved investing in personal injury settlements. The SEC charged the defendants with fraud and acting as unregistered brokers “selling” unregistered securities. Christopher Warren, Managing Partner at Warren Law Group states, “Even post-Madoff, a Ponzi Scheme is a popular confidence con…

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