Wedbush

News Wedbush Securities Inc. Settles for $350,000 Fine with FINRA Over Unauthorized Wire Transfers

Wedbush Securities Inc. has settled with FINRA for a $350,000 fine after a cyber fraud incident involving unauthorized wire transfers of over $6.6 million. The breach, occurring between January 27 and February 4, 2021, was due to a hacked email of a representative from a correspondent firm. FINRA's investigation highlighted Wedbush's failure in due diligence and verification processes. The firm has since reimbursed affected customers, updated its supervisory procedures, and committed to enhanced cybersecurity measures to protect client assets.

News FINRA Penalties And Regulation SHO Breaches At WEDBUSH Securities

Wedbush Securities, Inc. violated Regulation SHO Rules 204(a), (b), and (c) and FINRA Rule 2010 by failing to timely close out 2,056 fail-to-deliver positions as required by Rule 204(a), failing to place securities in the "penalty box" as required by Rule 204(b), and failing to comply with the notice requirement of Rule 204(c).