NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Brockington Securities, Inc.
AWC/2008011660901

The Firm failed to develop and implement an AML program reasonably designed to achieve and monitor compliance with Bank Secrecy Act (BSA) requirements. The firm’s AML program had inadequate procedures regarding the detection and reporting of suspicious activity, and the firm did not receive Financial Crimes Enforcement Network (FinCEN) requests pursuant to the BSA. The firm failed to timely detect, investigate and report multiple instances of suspicious activity in customer accounts. The Firm failed to conduct an independent AML test one year, failed to satisfy its supervisory control system requirements under NASD Rule 3012 and failed to prepare an adequate NASD Rule 3012 report detailing its system of supervisory controls and the summary of test results, which made its statement that “no other modification of the written supervisory procedure (WSP) was deemed necessary” baseless. The firm failed to properly supervise the transmittal of customer funds and/or securities.

The firm’s employees utilized their personal email accounts to conduct business contrary to firm policy, but the firm did not have a system in place to review the emails.

Brockington Securities, Inc. : Censured; Fined $24,000; Required to conduct eight hours of Anti-Money Laundering (AML) training for all employees within six months after issuance of this AWC.

Tags: AML  Email