FINRA Panel Fines Broker-Dealer United States $750,000 for Failing to Tailor AML Program to Actual Business

C.L. King & Associates, Inc., a broker-dealer, was fined the United States $750,000 by a hearing panel of the Financial Industry Regulatory Authority for misinforming companies throughout the redemption of specific financial obligation securities concerning the status of joint accounts preserved by the principal of a hedge fund and terminally ill individuals. The accounts were developed deliberately to help with the purchase of specific business financial obligation securities at a discount rate that consisted of a survivor advantage allowing the principal to redeem the securities upon the death of the joint occupant for the complete principal quantity. Furthermore, the panel held that C.L. King and Gregg Miller, the company’s anti-money laundering chief compliance officer, cannot execute an AML program fairly created to discover and report deals relating to the liquidation of “billions of shares” of cent stocks by 2 of the company’s clients.