As a watchdog with authority over some 630,000 brokers and their respective firms, FINRA has been busy, recently barring 11 individuals and suspending 16 more, with a notorious $1.5 million fraud just adding to their docket.
In a recent situation requiring swift intervention, FINRA, the Financial Industry Regulatory Authority, tackled a suspect operation. trading of bitcoin ( BTC Amidst dubious dealings offering Bitcoin at discounted rates from private circles, $1.5 million of investors' funds vanished without a trace.
A closer look by US regulators zeroes in on a trader named Daniel Todd Levine from Englewood, Colorado, who promised lucrative Bitcoin investments at cut-rate prices.
Alleged discount promises for Bitcoin ranged dramatically from 60% to 90%, with claims that Levine's brother was arranging purchases from an unknown private entity overseas.
An Ex-Morgan Stanley broker has recently been entangled in a controversial Bitcoin con act.
Although the exact figures of investor losses remain murky, it’s estimated that $1.5 million was routed to Levine, a former Morgan Stanley broker.
Morgan Stanley wasted no time launching inquiries into Levine's Bitcoin scam allegations soon after his resignation.
Documentation reveals that Daniel Todd Levine was allegedly due a hefty commission surpassing $2 million, funneling collected investor money to his brother, a fugitive on the run somewhere in Europe.
Per the Colorado Division of Securities, Levine's brother has eluded US authorities since 2005, with Levine admitting to falling for his brother's illusions later on.
While Levine refrained from outright admissions or denials concerning the scheme, there are reports of partial refunds to some defrauded investors, yet he did put pen to FINRA's consent and waiver agreement.
According to the official website On January 8th, 2019, Daniel Todd Levine formalized an agreement with the US-regulating entity by signing a consent order.
FINRA also shared the official documents of the case The order elaborates on instances where Levine breached various rules by not providing the documentation needed for the probe, even after acknowledging FINRA's requests.
In conjunction with FINRA, the SEC is urging investors to do a diligent background check on their financial consultants.
Failure to effectively manage regulatory inquiries appears to have cost Levine not one but two positions.
Following the scrutiny that led him to exit Morgan Stanley, Levine faced yet another job loss at First Financial Equity on similar grounds.
After departing Morgan Stanley, Levine's attempt to secure a comparable role at First Financial Equity hit a snag as undisclosed regulatory issues led to his dismissal.
FINRA's investigations continue to unravel more accusations against Daniel Todd Levine, including encouraging clients to borrow for international trades and partaking in undisclosed business activities, among other unauthorized actions.
