Herbert J. Sims & Co, Inc has agreed to pay a $100,000 fine as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Between 2016 and 2019, HJ Sims failed to establish and implement an anti-money laundering (AML) program that was reasonably designed to detect and cause the reporting of suspicious cyber-events. HJ Sims therefore violated FINRA Rules 3310(a) and 2010.
Between 2016 and 2019, five cyber-events occurred at or through HJ Sims. In each event, a bad actor gained unauthorized access to a customer’s or a registered representative’s email account.
In two of those events, the bad actor initiated a request to…
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