Biremis Corp. & CEO Peter Beck Barred by FINRA | August 7, 2012 | Continue reading â†’
& CEO Peter Beck Expelled by FINRA | Fort Lauderdale Securities Law, Family Law, Business Litigation
& CEO Peter Beck Barred by FINRA
, formerly known as Swift Trade Securities USA, Inc.
, was recently expelled by The Financial Industry Regulatory Authority
Biremis President and Chief Executive Officer, Peter Beck, was barred by FINRA.
The disciplinary actions resulted from supervisory violations related to detecting and preventing manipulative trading activities such as "layering," short sale violations, failure to implement an adequate anti-money laundering program, and financial, operational and numerous other securities law violations.
Thomas Gira, FINRA Executive Vice President and Head of Market Regulation, said, "In creating a business that allowed a significant volume of overseas day trading to pass through its systems on a regular basis, Biremis and Mr. Beck needed to devote the appropriate level of resources and personnel to ensure that this business was properly supervised, yet failed on both accounts.
found that during various periods from June 2007 to June 2010, Biremis
and Mr. Beck
failed to establish a supervisory system reasonably designed to achieve compliance with the applicable laws and regulations prohibiting manipulative trading activity.
Among other things, Biremis'
supervisory system failed to include policies and procedures designed to detect and prevent layering on U.S. markets.
Layering involves the placement of non-bona-fide orders on one side of the market in order to cause market movement that will result in the execution of an order entered on the opposite side of the market, after which the non-bona-fide orders are then canceled.
Biremis also failed to establish policies and procedures reasonably designed to detect and prevent manipulative activity designed to affect the closing price of a security.
As a result, Biremis
failed to detect and prevent potential layering activity and potential manipulation of the closing price of equity securities on U.S. markets.
FINRA found that despite the fact Biremis' only business was to execute transactions on behalf of day traders around the world, Biremis and Mr. Beck failed to implement an adequate anti-money laundering (AML) program to comply with the Bank Secrecy Act.
Among the violations related to its AML program, Biremis
failed to properly detect suspicious activities and file suspicious activity reports (SARs) when appropriate.
Also, Mr. Beck appointed an unqualified and untrained individual to supervise Biremis' AML compliance program and Biremis failed to provide adequate AML training to employees.
and Mr. Beck
also violated a number of additional securities laws and rules.
In concluding this settlement, Biremis
and Mr. Beck
neither admitted nor denied the charges, but consented to the entry of FINRA's findings.