Category Archives: Global Financial Services

Houston-Global Financial Services LLC Fined $100,000 by Securities Regulator

Global Financial Services, LLC. entered into a Letter of Waiver Acceptance and Consent with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from October 1, 2008-August 23, 2012, the firm failed to establish policies and procedures reasonably designed to detect and cause reporting of suspicious activities and failed to achieve compliance with the Bank Secrecy Act. Case#2012030724501

At issue was the liquidation of Venezuelan and other foreign debt for a customer which resulted in 53 outgoing wires totaling over $89 million in 2009. Similar trading in 2010 resulted in outgoing wires over $37 million.

According to the pleading this activity triggered a number of red flags indicative of potential suspicious trading. The red flags were listed in the firms written anti money laundering procedures and include:

  • wire activity that is unexplained, repetitive, unusually large or shows patterns or with no apparent business purpose;
  • appears to be acting as an agent for an undisclosed principal, but declines or is reluctant, without legitimate commercial reason, to provide information or is otherwise evasive regarding that person or entity

Global Financial Services is headquartered in Houston, Texas, and has about 18 registered representatives. They were censured and fined $100,000.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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