FINRA BrokerCheck fixes gaping hole in database.
12.23.09
Our tests show that changes to FINRA's
Brokercheck have finally closed a major loophole in
a database long criticized as outdated and difficult to use
(previous editions were cumbersome: for example, users were
required --in an era when name searches are the norm on almost any
database--to specify past employers for a broker before checking
their background; otherwise the search did not work).
Some estimate that more than 15,000 individuals who left the securities industry after facing regulatory action did not have their disciplinary history available on BrokerCheck. Those records became available this month. Many of those former brokers returned to the business world in different capacities and, like stock market vampires, found new victims. Repeated scandals in 2009 finally forced the industry to make this necessary change.
Some estimate that more than 15,000 individuals who left the securities industry after facing regulatory action did not have their disciplinary history available on BrokerCheck. Those records became available this month. Many of those former brokers returned to the business world in different capacities and, like stock market vampires, found new victims. Repeated scandals in 2009 finally forced the industry to make this necessary change.
Trader sues after being fired for relationship with Ponzi schemer Nicholson
10.04.09
Lindy Boville, a former trader, has sued RBC Capital
Markets for gender bias over her firing, which she said stemmed
from her dating a hedge fund manager later charged with fraud for
running a Ponzi scheme. Boville accused RBC of using her
relationship with James Nicholson as a pretext to fire her in March
2009 and assign her accounts to male workers, RBC spokesman Kevin
Foster denied those allegations: "Ms. Boville showed poor judgment
in helping Jim Nicholson raise money for his hedge fund and failing
to disclose her activities to her supervisors. It is irrelevant
that she had a personal relationship with Nicholson, and she should
have told RBC what she was doing."
Nardizzi & Associates had warned an investment banking client in 2007 that something was amiss with Nicholson and his Westgate Capital firm. A grand jury in April indicted him for a scheme that caused $150 million of losses.
Nardizzi & Associates had warned an investment banking client in 2007 that something was amiss with Nicholson and his Westgate Capital firm. A grand jury in April indicted him for a scheme that caused $150 million of losses.
Kroll, USIS, OPM investigators charged with falsifying background checks
04.14.09
Washington Post reported that employees for Office
of Personnel Management as well as subcontractors Kroll and USIS,
which handle the background inquiries for more than 100 federal
agencies, lied about interviews they never conducted and submitted
false statements.
In the race to the low price swamp, it has long been suspected that
some firms offer background checks at prices they cannot afford
without cutting corners ( "national criminal check"' for $4.95
anyone?). A shabby product is the logical result.