Global Strategic Investments—Failure to Detect, Analyze and Report Suspicious Transactions
Global Strategic Investments Allegedly Failed to Detect, Analyze and Report Suspicious Transactions Related to Over $650,000,000 in Venezuelan Bonds
Global Strategic Investments allegedly failed to detect, analyze and report very suspicious transactions with regards to their Venezuelan bonds, according to a Complaint from FINRA’s Department of Enforcement.
Beginning in November 2010, Global Strategic Investments, LLC initiated a new business line executing currency exchanges through the liquidation of over $650,000,000 worth of Venezuelan bonds for two correspondent accounts of foreign financial institutions, according to the Complaint.
In addition, FINRA further alleges, Global Strategic Investments allegedly failed to establish and implement a proper customer identification program.
Global Strategic Investments Allegedly Failed to Identify Venezuelan Bond Money Laundering Risk; Global Strategic Censured and Fined $200,000
Global Strategic Investments allegedly failed to identify the money laundering risk associated with its Venezuelan bond accounts two largest customers and their anticipated activity, and also failed to adjust its procedures to account for the high-risk – nature of this new endeavor, according to a Complaint from FINRA’s Department of Enforcement.
Instead, the Complaint further alleges, Global Strategic Investments mainly relied upon its new clients’ representations regarding the legitimacy of the transactions without further completing proper risk-based reviews to substantiate such claims.
Global Strategic’s over-reliance upon the client’s representations led to alleged failures to detect red flags that should have required additional due diligence on the part of the Firm, according to FINRA. As a result of the foregoing behavior, the Complaint alleges, Global Strategic Investments violated FINRA Rules, and FINRA has ordered them to be censured and to pay a fine of $200,000.
Global Strategic Investments did not admit nor denied the allegations.
The Peiffer Wolf Carr & Kane Securities Lawyers Often Assist Investors
The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of firms which have failed to detect and report suspicious activity misuse of customer funds. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of a firm failing to detect and report suspicious activity may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.