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The Financial Professionals Coalition, Ltd. is a diverse resource for over 1.2 million registered representatives, associated persons, traders, bankers, back-office staff, and owners of broker-dealers and registered investment advisors. The Coalition provides courtesy consultations with industry experts. Membership is free.

SCOTUS Reverses 6Cir and Remands to FDIC
HARRY C. CALCUTT, III v. FEDERAL DEPOSIT INSURANCE CORPORATION (Opinion, United States Supreme Court)
https://www.supremecourt.gov/opinions/22pdf/22-714_4315.pdf
 As set forth in SCOTUS' Syullabus:

The Federal Deposit Insurance Corporation (FDIC) brought an enforcement action against petitioner, the former CEO of a Michigan-based community bank, for mismanaging one of the bank’s loan relationships in the wake of the “Great Recession” of 2007–2009. After proceedings before the agency concluded, the FDIC ordered petitioner removed from office, prohibited him from further banking activities, and assessed $125,000 in civil penalties. Petitioner subsequently filed a petition for review in the Court of Appeals for the Sixth Circuit. That court determined that the FDIC had made two legal errors in adjudicating petitioner’s case. But instead of remanding the matter back to the agency, the Sixth Circuit conducted its own review of the record and concluded that substantial evidence supported the agency’s decision.

That was error. It is “a simple but fundamental rule of administrative law” that reviewing courts “must judge the propriety of [agency] action solely by the grounds invoked by the agency.” SEC v. Chenery Corp., 332 U. S. 194, 196 (1947). “[A]n agency’s discretionary order [may] be upheld,” in other words, only “on the same basis articulated in the order by the agency itself.” Burlington Truck Lines, Inc. v. United States, 371 U. S. 156, 169 (1962). By affirming the FDIC’s sanctions against petitioner based on a legal rationale different from the one adopted by the FDIC, the Sixth Circuit violated these commands. We accordingly grant the petition for certiorari limited to the first question presented; reverse the judgment of the Sixth Circuit; and order that court to remand this matter to the FDIC so it may reconsider petitioner’s case anew in a manner consistent with this opinion. 

Watertown Father and Son Sentenced to Prison for Decade-Long Lottery and Tax Fraud Scheme / More than 40 Massachusetts lottery agent licenses to be revoked or suspended (DOJ Release)
https://www.justice.gov/usao-ma/pr/watertown-father-and-son-sentenced-prison-decade-long-lottery-and-tax-fraud-scheme
In the United States District Court for the District of Massachusetts, after a jury trial, Ali Jaafar, 63, and Yousef Jaafar, 29, were convicted of one count of conspiracy to defraud the Internal Revenue Service, one count of conspiracy to commit money laundering and one count each of filing a false tax return; and Ali and Yousef Jaafar were respectviely sentenced to five years in prison and to 50 months in prison, and ordered to pay $6,082,578 in restitution and forfeit their profits. Previously, Mohamed Jaafar, another son of Ali Jaafar, pled guilty to conspiracy to defraud the Internal Revenue Service and awaits sentencing. As alleged in part in the DOJ Release:

In 2019 alone, Ali Jaafar was the top individual lottery ticket casher for Massachusetts. Mohamed Jaafar was the third highest individual ticket casher and Yousef Jaafar was the fourth highest individual ticket casher. The scheme also resulted in federal tax losses of over $6 million, more than $1.2 million of which went directly to the defendants in the form of fraudulent tax refunds.

. . .

Between 2011 and 2020, the defendants purchased winning lottery tickets from individuals across Massachusetts who wanted to sell their winning tickets for a cash discount instead of claiming their prizes from the Massachusetts State Lottery Commission. This allowed the real winners to avoid identification by the Commission, which is legally required to identify lottery winners and withhold any outstanding taxes, back taxes and child support payments before paying out prizes. The defendants recruited and paid the owners of dozens of convenience stores to facilitate the transactions. After purchasing tickets from the lottery winners at a discount, using the convenience stores as go-betweens, the defendants lied to the Commission, claiming the full amount of the prize money as their own. The defendants then further profited by reporting the winnings on their income tax returns and claiming equivalent fake gambling losses as an offset, thereby avoiding federal income taxes and receiving fraudulent tax refunds. 

Woman Guilty of Using Threats and Intimidation to Bilk Elderly Victim Out of More Than $1.6 Million (DOJ Release)
https://www.justice.gov/usao-ndil/pr/woman-guilty-using-threats-and-intimidation-bilk-elderly-victim-out-more-16-million
In the United States District  Court for the Northern District of Illinois, Lee Turner a/k/a "Ashley Turner" pursuant to a Plea Agreement pled guilty to one count of using a facility of interstate commerce to promote and carry on unlawful activity, namely theft and intimidation
https://www.justice.gov/d9/2023-05/0076_-_0000_-_plea_agreement_as_to_lee_turner_rc_.pdf As alleged in part in the DOJ Release:

Turner admitted in a plea agreement that from 2018 to 2021 she communicated numerous threats and fraudulent statements to the victim, who was in his seventies and had limited vision.  Turner’s communications threatened to expose the victim’s purported criminal activity, even though Turner had no knowledge of any such activity committed by the victim.  Turner took on false personas to convey false statements purportedly from others, including alleged gang members, individuals involved in organized crime, prosecutors, journalists, and corrupt law enforcement officers.

In one example cited in the plea agreement, Turner, using the alias “Big Joe,” sent a series of messages to the victim, claiming that the victim had to pay $30,000 to prevent law enforcement from raiding the victim’s residence and a relative’s residence.  On June 13, 2019, the victim paid Turner $30,000 to avoid the purported raids, the plea agreement states.  The money was one of dozens of similar payments, ranging in value from $5,000 to $66,000, that the victim made to Turner.  In all, Turner received $1,611,975 from the victim as a result of the scam, the plea agreement states.

FINRA Censures and Fines J.P. Morgan Securities LLC For Erroneous Orders
In the Matter of J.P. Morgan Securities LLC, Respondent (FINRA AWC 2018058111301)
https://www.finra.org/sites/default/files/fda_documents/2018058111301
%20J.P.%20Morgan%20Securities%2C%20LLC%20CRD%2079
%20AWC%20gg.pdf
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, J.P. Morgan Securities LLC submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that J.P. Morgan Securities LLC has been a FINRA member firm since 1936 with over 30,000 registered persons at over 5,400 branches. The AWC asserts in part under the "Background" section that [Ed: footnote omitted]:

In June 2017, the firm consented without admitting or denying the findings to a $800,000 fine and an undertaking imposed by multiple exchanges for violations of Securities Exchange Act of 1934 (Exchange Act) Rule 15c3-5 and applicable exchange rules. The exchanges found, in relevant part, that between May 2012 and April 2016, the firm failed to have reasonable controls to prevent the entry of erroneous orders by rejecting orders that exceed appropriate price or size parameters, or that indicate duplicative orders.

In November 2021, the firm consented without admitting or denying the findings to a fine of $120,000 imposed by Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGX Exchange, Inc., and Cboe EDGA Exchange, Inc. for violations of Exchange Act Rule 15c3-5. These exchanges found that, on August 7, 2018, and December 19, 2019, the firm failed to prevent the entry of erroneous orders because, in part, the firm’s thresholds for size and price controls were too high to be effective, and its supervisory system for review of soft blocks was not reasonably designed. Some of the violative conduct in this AWC relates to the same controls at issue in the aforementioned Cboe settlements.

In accordance with the terms of the 2023 AWC, FINRA imposed upon Respondent JP Morgan Securities  a Censure and a $750,000 fine to be paid jointly to Nasdaq and FINRA  ($187,500 is allocated to FINRA). As alleged in the "Overview" of the 2023 AWC:

From January 2019 to July 2022, the firm’s financial risk management controls and supervisory procedures were not reasonably designed to prevent certain erroneous orders that exceeded appropriate price or size parameters, on an order-by-order basis or over a short period of time, or that indicated duplicative orders. Accordingly, the firm violated Exchange Act § 15(c)(3) and Rule 15c3-5(b) and (c)(1)(ii), and FINRA Rule 2010 

FINRA Suspends Rep Over Private Securities Transaction and Outside Business Activities
In the Matter of Lizbeth Saavedra, Respondent (FINRA AWC 2021072383703)
https://www.finra.org/sites/default/files/fda_documents/2021072383703
%20Lizbeth%20Saavedra%20CRD%206785677%20AWC%20lp.pdf
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Lizbeth Saavedra submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that Lizbeth Saavedra entered the industry in 2017 as a Non-Registered Fingerprint individual ("NRF") with PFS Investments Inc. and in that same year became registered. 

In accordance with the terms of the AWC, FINRA imposed upon Saavedra a 60-calendar-day suspension from associating with any FINRA member in all capacities. No fine was imposed in consideration of her financial status. As alleged in part in the "Overview" portion of the AWC:

In September 2020, while associated with PFSI, Saavedra violated FINRA Rules 3280 and 2010 when she personally invested $8,000 in a merchant cash advance company (Company A), without providing prior written notice to, or obtaining written approval for her private securities transaction from, the firm.

From December 2020 to August 2021, Saavedra also violated FINRA Rules 3270 and 2010 by engaging in two outside business activities without providing prior written notice to PFSI. From December 2020 to August 2021, Saavedra worked as an administrative assistant for representatives of, and later directly for, Company A, earning approximately $30,000 in compensation. In January 2021, Saavedra created and registered a limited liability company for business.