Jonathan Harold Frede—Failure to Establish Adequate Supervisory Procedures

stockbroker fraud attorneysJonathan Harold Frede Allegedly Failed to Maintain Adequate Supervisory Procedures Regarding the Sale of Unregistered Securities and Anti-Money Laundering Procedures While at Murphy & Durieu

Jonathan Harold Frede allegedly failed to maintain adequate supervisory procedures regarding the sale of unregistered securities and anti-money laundering (AML) procedures while operating as the Chief Compliance Officer at Murphy & Durieu, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

Frede, despite being the designated supervisor to establish and maintain such procedures, allegedly failed to reasonably carry out any of these responsibilities, and reportedly did not establish a supervisory system or develop proper written supervisory procedures (WSPs) reasonably designed to ensure compliance with the Securities Act, the AWC also notes.

Jonathan Harold Frede Suspended for Four Months and Fined $20,000 by FINRA

Frede, who was first hired by Murphy & Durieu in March 2005 and terminated by the firm on March 5, 2013, ran a supervisory system which failed to adequately address customer trading in so-called Delivery Versus Payment/Receive Versus Payment Accounts (DVP/RVP), the AWC further alleges, even though customer liquidations of low-priced securities were frequently effected in such accounts.

What is more, the AWC alleges, Frede allegedly did not design AML policies and procedures that were adequately suited to Murphy & Durieu’s business model, in respect to customer liquidations of low priced securities through DVP/RVP accounts. The AWC notes that the firm’s AML policies and procedures did not properly monitor for potential suspicious activity, or identify AML red flags.

As a result of the aforementioned activity, Frede violated FINRA and NASD Rules, and hence has been suspended for four months by FINRA, and also fined $20,000, the AWC reports.

The Peiffer Wolf Carr & Kane Investment Recovery Attorneys Often Represent Investors

The Peiffer Wolf Carr & Kane investment recovery attorneys often represent investors who lose money as a result of investment misconduct. 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 investment misconduct may contact the investment recovery attorneys at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

phil korosec (1249 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.