The Firm and Hsu failed to preserve electronic communications related to the firm’s business when Hsu and another registered representative of the firm sent and received electronic communications related to the firm’s business using personal email accounts that were not linked to the firm’s email preservation system; the firm’s failure to preserve electronic communications was considered willful.
Hsu and the firm failed to comply with AML rules and regulations in that they failed to access the Financial Crimes Enforcement Network (FINCEN) and review records, failed to develop and implement a written AML program reasonably designed to achieve compliance with the BSA and implementing regulations, and failed to properly conduct annual independent tests of its AML program for several years. Hsu signed and submitted certifications to FINRA that contained inaccurate information regarding preservation of emails in compliance with SEC Rule 17a-4. Hsu willfully failed to amend his Form U4, to disclose material information.
Pyramid Financial Corp.: Fined $55,000 jointly and severally with Hsu
John Hsu a/k/a Juan Hsu (Principal): Fined $55,000 jointly and severally with Pyramid; Fined an additional $10,000; Suspended 45 business days in all capacities; Barred as a Principal only.