- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2025-01-13T17:32:00
A broker-dealer subsidiary of Toronto-based BMO Financial Group will pay nearly $41 million in penalties to the Securities and Exchange Commission (SEC) to settle allegations that its traders issued misleading disclosures on bonds for three years, causing $19 million in harm to its customers.
New York-based BMO Capital Markets Corp. failed to properly supervise the trading activity of its bond desk, according to the SEC. From 2020-23, BMO Capital traders issued misleading information on the characteristics of mortgage-backed bonds, as well as the collateral backing those bonds, the agency said in a press release Monday. These types of bonds are called collateralized mortgage obligation (CMO) bonds.
BMO Capital sold $3 billion worth of Agency CMO Bonds over that period, the SEC said, without having policies and procedures in place to order internal compliance reviews of bond information shared with customers. The firm also lacked a process to review bond structures against claims made in the company’s marketing materials.
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The U.K. Financial Conduct Authority fined the London branch of Australian-based Macquarie Bank Limited more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.
Broker-dealer TD Securities failed to prevent a trader from placing and then withdrawing thousands of false trades over the course of a year in part because its compliance department failed to follow up on red flags generated by the illegal trades, three regulators said.
A subsidiary of JPMorgan Chase will pay an additional $100 million to the Commodity Futures Trading Commission to settle charges it failed to adequately monitor and supervise its trading system.
A cannabis company agreed to pay $225,000 to settle allegations that funds were temporarily deposited into its year-end accounts for the sole purpose of inflating year-end cash, the Securities and Exchange Commission said.
Vince McMahon, the founder and former CEO of WWE, was fined $400,000 and ordered to reimburse the wrestling giant more than $1.3 million to settle charges brought by the Securities and Exchange Commission that he failed to disclose hush money payments he made on behalf of himself and the company.
Experian, the credit reporting giant, let compliance slide when it came to addressing consumer complaints about incorrect data, the Consumer Financial Protection Bureau said in a lawsuit against the credit agency.
