Post by Logan on Jun 27, 2016 23:08:56 GMT -6
A Downtown Cincinnati-based brokerage and asset management firm last week agreed to be censured while paying back more than $700,000 in fees and paying civil penalties to settle a case with the U.S. Securities and Exchange Commission. The firm's president and principal owner, Murray Sinclaire Jr., also must pay a civil penalty and can't work as a supervisor in the securities business for a year.
Under the settlement, Ross Sinclaire & Associates LLC (RSA), a full-service investment banking, securities brokerage and asset management firm with offices on Walnut Street, and Sinclaire neither admitted nor denied the SEC's findings that they helped another broker carry on what the settlement called a "fraudulent scheme" to inflate commissions.
A 10-page settlement approved by RSA, Sinclair and the SEC details how from 2007 to 2012, RSA and Sinclaire had a close relationship with Nicholas L. Fry II, president of registered investment advisor Fry Hensley and Co. Fry used "his close relationship" with RSA to get RSA's permission for Fry to make trades for his company's clients at RSA even though Fry didn't have the right license to do so, the settlement says.
In addition, RSA assigned Fry's wife, Jane, and an RSA registered representative as the account executive on FHC's accounts, paying Jane Fry 50 percent of the transactions charges "even though Jane Fry did essentially no work for RSA," according to the settlement. RSA and Sinclair kept half for the transaction charges. Jane Fry died in 2011; FHC accounts assigned to her shifted to Sinclaire but Nicholas Fry kept setting the amounts of the transaction charges.
Read more: www.cincinnati.com/story/money/2016/06/27/local-brokerage-and-its-leader-pay-thousands-sec/86444126/
Under the settlement, Ross Sinclaire & Associates LLC (RSA), a full-service investment banking, securities brokerage and asset management firm with offices on Walnut Street, and Sinclaire neither admitted nor denied the SEC's findings that they helped another broker carry on what the settlement called a "fraudulent scheme" to inflate commissions.
A 10-page settlement approved by RSA, Sinclair and the SEC details how from 2007 to 2012, RSA and Sinclaire had a close relationship with Nicholas L. Fry II, president of registered investment advisor Fry Hensley and Co. Fry used "his close relationship" with RSA to get RSA's permission for Fry to make trades for his company's clients at RSA even though Fry didn't have the right license to do so, the settlement says.
In addition, RSA assigned Fry's wife, Jane, and an RSA registered representative as the account executive on FHC's accounts, paying Jane Fry 50 percent of the transactions charges "even though Jane Fry did essentially no work for RSA," according to the settlement. RSA and Sinclair kept half for the transaction charges. Jane Fry died in 2011; FHC accounts assigned to her shifted to Sinclaire but Nicholas Fry kept setting the amounts of the transaction charges.
Read more: www.cincinnati.com/story/money/2016/06/27/local-brokerage-and-its-leader-pay-thousands-sec/86444126/