A former Jefferies Group mortgage-bond salesman was barred from the securities industry for three months after a regulator alleged he misled customers.
Bloomberg News reports that Kevin Blaney agreed to a suspension that prevents him from having contact with any Financial Industry Regulatory Authority member through December 5, according to a Finra disciplinary action dated September 1. Blaney, who didn’t admit or deny the allegations, was fined $30,000.
Blaney “made a false statement to a customer, or failed to correct a statement made to a customer” on six occasions between January 2009 and December 2011, the industry-funded regulator said. Blaney was allowed to resign from Jefferies in August 2014 following an investigation into communications he made to buy and sell residential mortgage bonds, according to Finra records.
Blaney left the investment bank weeks after RMBS trader Litvak was sentenced to two years in prison for lying to customers about the securities between 2009 and 2011. Litvak’s conviction was overturned in December in an appeals court ruling that promises to recast how the government pursues cases against individuals for alleged wrongdoing on Wall Street. Litvak’s new trial is set for January.
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