In the Matter of the Application of Thaddeus J. North
United States Securities and Exchange Commission
Exchange Act Release No. 84500 (2018)
- Written by David Bloom, JD
Facts
As the Chief Compliance Officer of Southridge Investment Group LLC (Southridge), Thaddeus J. North (defendant) was responsible for implementing and enforcing written procedures for supervising the review of Southridge’s electronic communications, including emails and Bloomberg messages. The written procedures required North to review Southridge’s electronic communications consistently. North admittedly failed to review the electronic communications in accordance with the written procedures. North ignored the Bloomberg messages and had no explanation for failing to review any electronic communications for an extended period of time. North also failed to report to the Financial Industry Regulatory Authority (FINRA) that a registered representative associated with Southridge entered into a business relationship with another individual disqualified from being a registered representative due to the failure to disclose a tax lien. FINRA determined North violated FINRA, National Association of Securities Dealers, and Municipal Securities Rulemaking Board rules. FINRA suspended North and imposed a fine and a censure. North appealed.
Rule of Law
Issue
Holding and Reasoning ()
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