The Securities and Exchange Commission (SEC) upheld a decision by the Financial Industry Regulatory Authority (FINRA) to fine Edward Wedbush, the founder and president of Wedbush Securities, Inc., $50,000 and to suspend him from acting in any principal capacities for 31 days. Wedbush was accused of allegedly failing to supervise certain mandated regulatory filings. In most cases, these supervisors are obligated to take a special examination as part of their qualification if they are involved in the day-to-day management or operation of a firm. According to the SEC, from January 2005 until July 2010, Wedbush Securities filed 158 required reports with FINRA related to judgments and settlements, arbitrations, civil litigations or regulatory actions, employee terminations and statistical information on customer complaints late, with inaccurate information, or not at all, while Wedbush was acting as president. This is against securities rules and regulations. The company was put on notice that they were failing to effectively modify its procedures and that it needed to address it numerous regulatory reporting deficiencies. The company did not rectify these transgressions, even after being told of them.
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