The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
January 6, 2021
Untimely Disclosure of Tax Liens Upends Chief Compliance Officer Via Statutory Disqualification (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/5629/finra-holeman-liens/
Today's blog considers a Wall Street career that began in 1966, when Allen Holeman started out as an Operations Clerk in a FINRA member firm's Compliance Department. In 2009, during the onset of the Great Recession, Holeman was hit with an IRS tax lien for unpaid 2006 and 2007 taxes; and, thereafter, another lien for unpaid 2008 taxes. In the interim, Holeman entered into installment payments against those liens. Upon joining David Lerner Associates in November 2013 as its Chief Compliance Officer, Holeman apparently failed to timely disclose the liens. Things just didn't get any better for him from that point on.
SEC Obtains Final Judgment Against Investment Adviser Who Misappropriated Over $5 Million from Clients (SEC Release)
https://www.sec.gov/litigation/litreleases/2021/lr25004.htm
https://www.sec.gov/litigation/litreleases/2021/lr25004.htm
In a Complaint filed in February 2017 in the United States District Court for the Southern District of New York
https://www.sec.gov/litigation/complaints/2021/comp25004.pdf, the SEC alleged that Barry F. Connell:
https://www.sec.gov/litigation/complaints/2021/comp25004.pdf, the SEC alleged that Barry F. Connell:
while employed at a major financial institution, misappropriated more than $5 million from clients primarily by moving funds between certain client accounts and issuing falsified third-party wire transfer forms and checks. Connell allegedly directed the funds to cover his personal expenses and fund his lavish lifestyle. In a parallel criminal action, the U.S. Attorney's Office for the Southern District of New York filed criminal charges against Connell. Connell pled guilty to those charges and was sentenced to a prison term of time served of approximately 36 months and ordered to pay forfeiture and restitution.
https://www.sec.gov/litigation/litreleases/2021/judgment25004.pdf, whereby he is enjoined from violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and he is found liable for disgorgement in the amount of $5,148,651 that is deemed satisfied by the restitution ordered against him in the parallel criminal action. Also, Connell consent to an SEC Order permanently barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, as well as permanently barring him from participating in any offering of penny stock.