Articles Posted in FINRA

On December 31, 2019, the firm Wilson-Davis & Co., Inc., and brokers Byron Bert Barkley, and James C. Snow Jr were fined $1,100,000, and had to pay disgorgement in the amount of $51,624, prejudgment interest and are required to retain an independent consultant to recommend changes to its WSPs. There were additional fines, sanctions, and suspensions.

The sanctions were based on findings that the firm was engaged in short selling which is a violation of Rule 203(b)(1) of Regulation SHO of the Securities Exchange Act of 1934 (Reg SHO).  ( FINRA Disciplinary Actions March 2020).”

Barkley and Snow were allegedly involved in various violations and activities including: 

Samuel Lek, former Chief Executive Officer of Lek Securities Corporation (Lek Securities) (CRD #1642936)– An AWC (Accept, Waiver & Consent) was issued in which Lek was permanently barred from the securities industry in all capacities. Lek was fined $900,000 for violating FINRA and Exchange supervisory rules, specifically Rule 15c3-5 of the Securities Exchange Act of 1934 (Market Access Rule), among other infringements. Action was taken by FINRA, the NASDAQ Stock Market, the New York Stock Exchange, Cboe Global Markets, and certain of their various affiliated Exchanges. The fine was shared proportionally between FINRA and the exchanges. 

Lek Securities was providing market access to foreign traders for several years while they would perform manipulating trading on US exchanges including activities such as spoofing, layer, and cross-product manipulation. Samuel Lek himself allegedly assisted with these tradings through a sub-accounting held and Lek Securities.

Even when FINRA, the Exchanges and the SEC began investigations into certain suspicious activity, Samuel Lek continued with these manipulative trading practices. Lek may have even provided office space, trading software, computer servers, and other services to the customer traders of this sub-account.

Nomura Securities International, Inc. (CRD #4297, New York, New York) – An AWC (Accept, Waiver & Consent) was issued in which Nomura Securities International, Inc. was fined $300,000 and censured by FINRA. The firm consented to the sanctions without confirming or denying the findings. FINRA found that the firm underwent system-wide coding related issues that caused them to exclude certain foreign-listed securities from its short interest submissions to FINRA. Nomura Securities International, Inc. is also believed to have inaccurately reported the short interest positions that they did submit to FINRA. 

Another issue was Nomura Securities International, Inc.’s alleged lack of supervisory oversight.  The firm may not have established a proper supervisory system.

If you lost money with Nomura Securities International, Inc. or any broker or brokerage firm, call us immediately to discuss your situation.  We are here to attempt to recover your investment losses. NO RECOVERY, NO FEE! Costs are additional.