Articles Tagged with Goldman Sachs

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Eli Lazarowitz, while associated with Goldman Sachs, broke FINRA and securities rules. He allegedly failed to disclose the existence of an outside brokerage account he held at another FINRA-regulated broker-dealer. He also allegedly failed to notify the FINRA member where the outside brokerage account was held that he had become associated with the firm. He also attested to Goldman Sachs that he did not have any outside brokerage accounts requiring disclosure, which was not true. For this misconduct, he was fined $5,000 and suspended from the industry for 45 days.

According to his online, FINRA BrokerCheck report which is public record, Mr. Lazarowitz was previously registered with Waterhouse Securities in Omaha, Nebraska from September 1998 until January 1999, Citicorp Investment Services in Long Island City, New York from March 1999 until April 2000, Goldman Sachs Execution & Clearing in New York, New York from April 2000 until January 2012, BNP Paribas Securities Corp in New York from May 2017 until October 2017 and BNP in New York from May 2017 until October 2017. He is not currently registered as a broker.

Stoltmann Law Offices is investigating Ellen Donnelly, who was terminated from Morgan Stanley after allegations of misconduct. She allegedly borrowed funds from a client, which is against securities rules and regulations. Her former firm, Morgan Stanley, can be sued in the Financial Industry Regulatory Authority (FINRA) for not reasonably supervising her while she was employed there. Please call our Chicago and Barrington, Illinois-based law firm to speak with an attorney about your options. The call is free with no obligation. We take cases on a contingency fee basis only, so we only make money if you recover yours. 312-332-4200.

Donnelly was registered with Lehman Brothers in New York, New York from June 1993 until September 1993, Smith Barney in New York from September 1993 until October 1995, Goldman Sachs in New York from October 1995 until August 2004, Merrill Lynch in Staten Island, New York from September 2004 until August 2010 and Morgan Stanley in Red Bank, New Jersey from July 2010 until January 2017. She is currently registered with International Assets Advisory in Spring Lake, New Jersey and has been since January 2017.

According to a recent release by the Commodity Futures Trading Commission (CFTC), Goldman Sachs Group and Goldman Sachs & Co. were issued an Order to pay $120 million. The bank allegedly attempted to manipulate Benchmark Swap Rates. The unlawful conduct included traders as well as the head of Goldman’s Interest Rate Products Trading Group in the U.S. The CFTC Order fined Goldman, ordered the firm to cease and desist from further violations, and to take steps to detect and deter trading intended to manipulate swap rates and to improve internal controls, among other things. If you suffered losses with Goldman Sachs, please call our securities law firm based in Chicago at 312-332-4200 to speak to one of our attorneys about your options. The call is free with no obligation. We take cases on a contingency fee basis only. We may be able to help you recover your losses in the Financial Industry Regulatory Authority (FINRA) forum. Please call today.

Primus Pacific Partners, a private equity firm and the largest shareholder in Malaysian bank EON Capital, filed suit against Goldman Sachs for $510 million for fraud and breach of fiduciary duty. The suit goes against Goldman as the bank is being sued by a shareholder of one of its former clients over alleged fraudulent misrepresentations that involve links to the prime minister of Malaysia, Najib Razak. The suit claimed Goldman concealed a conflict of interest involving the Prime Minister while the investment bank was acting as financial adviser to EON, which was weighing a takeover bid by Hong Leong Bank. Talks on the deal began in 2009 but the bid was held up until 2011 as Primus fought the offer in Malaysia’s courts. One of the prime minister’s brothers, Nazim Razak, was a director at Hong Leong Bank, and another brother, Nazir Razak, was chairman of CIMB Group, which advised Hong Leong Bank on the bid. At the same time, Goldman was an adviser to 1Malaysia Development Berhad, also known as 1MDB, a development fund established by the prime minister. In a response to the suit, Goldman Sachs pointed out that Primus had already failed to block the deal.

In yesterday’s CNBC.com article entitled “Lawyer: SEC Should Look Into Goldman’s Tesla Call,” Andrew Stoltmann stated that the Securities and Exchange Commission (SEC) should investigate Goldman Sachs’ upgrade of Tesla stock. Critics of the upgrade state that the investment bank has already had to underwrite a $1.7 billion stock sale, and this is worrisome. Stoltmann said “To start investigating, all the SEC has to do is have a belief that something amiss may have happened.”

On Wednesday, Goldman Sachs revealed the upgrade of Tesla stock to “buy” from “neutral,” stating that it doesn’t “believe Tesla shares are fully capturing the company’s disruptive potential.” Tesla share rose that same day, but at the end of the day, Tesla announced its stock offering would be co-led by Goldman, and the shares gave back gains, falling into the red. The shares went up more than two percent yesterday. Stoltmann was quoted as saying Wednesday’s roller-coaster ride for Tesla stockholders represents the bank employing a “Swiss-cheese wall” between divisions instead.

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A new study by WealthManagement.com stated that almost half of financial advisors fired for misconduct are hired within a year. A University of Chicago study also found that almost 8% of the 650,000 advisors registered with the Financial Industry Regulatory Authority (FINRA) have a disclosure event on their record, including regulatory judgments, employment separations and civil and criminal judgments. Advisors with a history of misconduct are five times more likely to do something unethical again and advisors at firms whose executives have a record of misconduct are twice as likely to behave unethically. More than one advisor in seven at Oppenheimer & Co., Wells Fargo and First Allied Securities have a history of misconduct, but it is less than one in one hundred at Goldman Sachs and Morgan Stanley.

The Securities and Exchange Commission (SEC) yesterday charged Goldman Sachs $15 million to settle charges that its securities lending practices violated federal regulations. According to the SEC Order, customers frequently ask broker-dealers such as Goldman to locate stock in order to short sell it. Granting that, means that the firm has borrowed, arranged to borrow, or reasonably believes it could borrow the security in order to complete the short sale. The SEC found that Goldman violated securities laws by not providing locates to customers where it had not performed an adequate review of the securities to be located. They also were inaccurately recorded in a firm log. Andrew J. Ceresney, Director of the SEC’s Enforcement Division stated, “The requirement that firms locate securities before effecting short sales is an important safeguard against illegal short selling. Goldman Sachs failed to meet its obligations by allowing customers to engage in short selling without determining whether the securities could reasonably be borrowed at settlement.” The SEC questioned the firm’s lending practices during an investigation in 2013. If you suffered losses with Goldman Sachs, you may be able to recover your losses. Please call our Chicago-based securities law offices to speak to an attorney for free about your options.

The Financial Industry Regulatory Authority (FINRA) ordered a Goldman Sachs unit to pay $1.8 million because of not reporting substantial details about its alternative trading system, and for other lapses in reporting. FINRA alleges that the failure to report the details occurred over a seven year period from 2006 to 2014. Alternative trading systems, also known as “dark pools,” which are private exchanges or forums for trading securities that are not accessible by the investing public. They completely lack transparency. FINRA also accused Goldman Sachs of sending inaccurate order data to the regulatory authority for more than eight years, and of not having adequate controls in place to detect and prevent the violations. For example, Goldman Sachs failed to send details regarding more than $6.3 billion “order events” to FINRA, which makes up about 6.1% of all order information the firm was required to send.

According to a Hearing Panel Decision by the Financial Industry Regulatory Authority (FINRA), Audra Lynn Lalley, a registered representative at Morgan Stanley Smith Barney in the Private Wealth Management group, allegedly effected a set of trades pursuing a particular investment strategy for a group of clients. Allegedly, Ms. Lalley did not contact the clients when she executed the trades. The client complained that he did not receive an explanation for the trades, either and then asked her to reverse the trade. In Ms. Lalley’s failure to obtain authorization to make the trades, Morgan Stanely, her former firm, can be held liable. They had a duty to reasonably supervise her while she was employed there and can be sued in the FINRA arbitration process. Ms. Lalley was employed by Goldman Sachs in New York, New York from October 1998 until April 2002, Morgan Stanley in Los Angeles, California from May 2002 until November 2011 and Barclays Capital, also in Los Angeles from November 2011 until May 2014. She has two customer disputes against her. She is not currently licensed to act as a broker.

If you invested money with Audra Lynn Lalley, please contact our securities law office at 312-332-4200 to speak to an attorney. The call is free with no obligation. We can help you discuss your options of suing Morgan Stanley.

The Financial Industry Regulatory Authority (FINRA) fined Goldman Sachs $20,000 on October 22, 2013, when the firm entered into a Letter of Acceptance, Waiver and Consent (AWC). On March 15th, 2013, the firm was fined $39,000, which included a fine of $37,000 for violations of a FINRA rule. On June 10, 2011, FINRA fined Goldman Sachs $27,500 for late reporting techniques, and on March 16, 2010, they were fined $40,000 for violations of FINRA rules. Goldman Sachs did not adhere to rules with the Trade Reporting and Compliance Engine (TRACE) reporting requirements. This caused Goldman Sachs’ records to be inaccurate. Goldman Sachs failed to report to TRACE within the fifteen minute time period allotted. The firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to the applicable securities laws and regulations and the rules of FINRA. Furthermore, the firm’s written supervision materials were not up to industry standards. If you would like to sue Goldman Sachs for investment losses, you may do so in the FINRA arbitration process for their failure to adhere to FINRA rules. Please call us at 312-332-4200 to speak to an attorney about your options.

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