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Gregg Ettin Suspended by FINRA Over Alleged Failure to Supervise

Jan 19, 2023 Failure to Supervise

Gregg Ettin (CRD #: 1604260), a broker registered with Clearview Trading Advisors, has been suspended by FINRA, according to his BrokerCheck record, accessed on January 11, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

FINRA Suspension

On November 11, 2022, Gregg Ettin consented to the entry of findings that he and Clearview Trading Advisers allegedly failed to establish and enforce an anti-money laundering (AML) compliance program reasonably designed to identify and report suspicious activity.

This allegedly occurred between August 2018 and March 2019, during which time Gregg Ettin was the firm’s Anti-Money Laundering Compliance Officer and Chief Executive Officer.

Allegations Concerning Anti-Money Laundering Compliance Program

According to a Letter of Acceptance, Waiver & Consent (AWC), Clearview Trading Advisers allegedly expanded their low-priced securities business starting in August 2018, executing thousands of transactions involving billions of low-priced equity securities.

The AWC alleges that Gregg Ettin and the firm failed to review existing AML procedures or develop and implement an AML program adapted to this increase in business.

Further, Clearview Trading Advisers allegedly contracted with Company A to perform certain reviews of client information to detect potential money laundering. However, the firm’s Written Supervisory Procedures (WSPs) allegedly did not provide any direction for how the firm would supervise Company A’s services.

Allegations Concerning Unregistered Securities 

The AWC further alleges that Gregg Ettin failed to establish a supervisory system, including Written Supervisory Procedures (WSPs), to reasonably comply with Section 5 of the Securities Act. Section 5 of the Securities Act requires the registration of a security before it can be offered/reoffered or sold/resold unless the securities qualify under an exemption.

For example, the firm’s WSPs allegedly did not provide any guidance on how to assess the eligibility of unregistered securities for sale or specify the paperwork to be collected and reviewed in relation to the deposit and resale of these securities.

Greg Ettin allegedly did not supervise Company A’s services or conduct a reasonable inquiry into the registration of certain low-priced securities before executing trades.

The AWC alleged that Clearview Trading Advisers executed transactions involving billions of shares in unregistered securities during the relevant period.

The AWC concluded that these allegations constituted violations of FINRA Rules 3110(a), 3110(b), and 2010 on the part of Gregg Ettin and Clearview Trading Advisers.

FINRA Rule 3110

FINRA Rule 3110(b) requires that firms implement Written Supervisory Procedures (WSPs) designed to identify and prevent violations of securities regulations.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Gregg Ettin consented to the following sanctions:

  • $25,000 fine
  • 9-month suspension from associating with FINRA members in all principal capacities
  • Requirement to requalify as a general securities principal

His suspension began on December 5, 2022, and will end on September 4, 2023.

Clearview Trading Advisers consented to the following sanctions:

  • $100,000 fine
  • Censure

You can read the full AWC here.

Background Information

Gregg Ettin has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 99TO – Operations Professional Examination
  • Series 57TO – Securities Trader Exam
  • Series 79TO – Investment Banking Registered Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 55 – Limited Representative-Equity Trader Exam
  • Series 7 – General Securities Representative Examination
  • Series 14 – Compliance Officer Examination
  • Series 24 – General Securities Principal Examination

He has also worked for the following firms:

  • Broadband Capital Management (CRD#:48001)
  • Stonehaven (CRD#:118913)
  • Carlin Equities Corporation (CRD#:31295)
  • Fox-Pitt, Kelton (CRD#:10485)
  • Schroder & Company (CRD#:6112)

Kurta Law Can Help

If you worked with Gregg Ettin and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.