Finra Fines Guggenheim Securities for Lack of Supervision
The Financial Industry Regulatory Authority said it fined Guggenheim Securities LLC of New York $800,000 for failing to supervise two collateralized debt obligation traders who tried to hide a trading loss in 2008.
Alexander Rekeda, the former head of Guggenheim’s CDO Desk, was suspended for one year and fined $50,000; Timothy Day, who previously worked as a trader on Guggenheim’s CDO Desk, was suspended for four months and fined $20,000, Finra said in a statement.
“The traders deceived their customer and supported their scheme through the use of inaccurate books and records, all of which went undetected by the firm,” Brad Bennett, Finra’s chief of enforcement, said in the statement.
Tripp Kyle, a spokesman for Guggenheim, said the firm has “cooperated fully” with Finra throughout its investigation and that the two men no longer work at the firm.