EFTA01297822.pdf

rdc
DB12000P - Deutsche Bank Private Bank Alert
Batch Date: 8/17/2018 Alert Date: 8/17/2018
Added to Monitoring: 08/1712018
Organization: NES. LLC
Address: Ciiurt Ey UNITED STATES
Tracking ID: KYC Reporting ID:
Alerted Entity rt 1 of 2 Risk Priority: Critical Alert ID:
Entity Information
Entity ID:
Riskid: R2451848
Entity Name: Nasdaq Execution Services, LLC
Alias: • NES
• BRUT. LLC
Address: New York, New York, UNITED STATES
Recent Event(s): • REG - Regulatory Action / ACT - Disciplinary. Regulatory Action. 04/01/2014
Nasdaq Execution Services, LLC submitted a Letter of
Acceptance, Waiver and Consent in which the firm was fined 55.000. Without admitting
or denying the findings, the firm consented to the described sanction and to the entry of
findings that it entered orders in the NASDAQ Market Center that failed to indicate correct
capacity in contravention of NASDAQ Rule 4611(aX6)., 04/01/2014, Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2014
Event: • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary, Regulatory Action,
05/29/2013
The SEC issued an order instituting administrative and cease-and desist proceedings, making findings and
imposing sanctions and a cease-and desist order against NASDAQ Execution Services, LLC, alleging that
as of May 18. 2012, NASDAQ's rules did not permit it or its affiliated brokerdealer,
NES. to assume an error position in a listed security for any reason, and it therefore was
also not permitted to engage in trading to cover any position it did assume; and as result of NES's error
account activity on May 18. 2012. NES experienced a
net capital deficiency of approximately $26.5 million in violation of Exchange Act Section
15(c)(3) and Rule 15c3-1 thereunder, and this deficiency resulted from the requirement that NES
take a haircut of $35.3 million due to its error account activity related to the Facebook IPO; and prior to the
haircut. NES1s excess net capital was approximately $8.8 million.. 05/29/2013. SEC Administrative
Proceedings - 2013
• REG - Regulatory Action / ACT - Disciplinary, Regulatory Action, 04/01/2014
Nasdaq Execution Services, LLC submitted a Letter of
Acceptance. Waiver and Consent in which the firm was fined 55,000. Without admitting
or denying the findings, the firm consented to the described sanction and to the entry of
findings that it entered orders in the NASDAQ Market Center that failed to indicate correct
capacity in contravention of NASDAQ Rule 4611(aX6)., 04/01/2014, Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2014
• REG - Regulatory Action / ACT - Disciplinary. Regulatory Action, 01/01/2010
NASDAQ Execution Services, LLC submitted a Letter of Acceptance, Waiver and Consent in which the
firm was censured and fined $45,000. The findings stated that the ECN's supervisory system did not
provide for supervision
reasonably designed to achieve compliance with applicable securities laws, regulations and FINRA rules
concerning short sale transaction reporting, and the firm's written supervisory procedures regarding trade
reporting were not reasonably designed to achieve compliance with reporting the correct short sale
indicator, another ECN the firm operated transmitted ROEs to OATS that OATS
Ccosystent wfh the terms and conaticers of your ROC Subscrber Apreemat the iteration contaned in this document is fc, alert purposes only and is nee to be used to, purposesof 0eleanntro an
incadovers elotwity tor any ant or any Ws KRAWrath* propases Use( toner agrees tra had such mean•, and intbmatgin Oraerit aintidenCe na t0 make use :What are• than 'or atirnaa(O
purpmes, to relate t only to irriplayees requiting such in...amebas and rot to release or dachas* rt to any other party T re Alm intormaton con:anis:I n :nrs document •ray or may nor portant, me indrodual
a entity refaa•oed in your flgylry SDNY_GM_00061295 P.Pe 1 ef 5
IDENTIAL
CONFIDENTIAL - PURSUANT TO FED. R.QQN(E DB-SDNY-0024120
EFTA_00I71807
EFTA01297822

rdc
DB12000P - Deutsche Bank Private Bank Alert
Batch Date: 8/17/2018 Alert Date: 8/17/2018
Added to Monitoring: 08/17/2018
Organization: NES. LLC
Address: Criuntiy UNITED STATES
Tracking ID: KYC Reporting ID:
Alerted Entity if: 1 of 2 Risk Priority: Critical Alert ID:
rejected for context or syntax errors and were repairable, and the firm failed to repair most of them and
also included that one ECN transmitted Route or Combined
Order/Route Reports to OATS that the OATS system was unable to link to the
corresponding new order that the destination member firm submitted due to
inaccurate, incomplete or improperly formatted data., 01/01/2010, Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2010
• REG - Regulatory Action / ACT - Disciplinary, Regulatory Action, 10/10/2007
Decision number 07-124 - Violated NYSE Rule 411(b)(1) by introducing for execution customer odd-lot
orders that aggregate 100 shares or more without having those orders consolidated into round-lots as far
as possible; violated NYSE Rule 476(aX6) by introducing for execution customer odd-lot orders that were
inconsistent with NYSE's odd-lot rules and policies; violated NYSE Rule 405(a) by failing to learn essential
facts relative to certain of its customers and orders it accepted for execution; violated NYSE Rule 342 by
failing to reasonably supervise and implement adequate controls, including separate system of follow-up
and review, reasonably designed to achieve compliance with NYSE odd-lot rules and policies. Consent to
censure and $190,000 fine.. 10/10/2007, New York Stock Exchange Disciplinary Actions
• REG - Regulatory Action / ACT - Disciplinary, Regulatory Action. 09/01/2006
NASD Fines BRUT $2.2 Million for rule violations relating to publication of erroneous
order execution quality reports, backing away from the
firm's posted quotes, failure to maintain two-sided
quotations, failure to comply with the rules applicable
to trade-throughs and locked and/or crossed markets,
non-retention of emails, OATS deficiencies and
inadequate supervision. In addition to the fine. BRUT
agreed to revise certain of the firm's written supervisory
procedures within 30 days. NASD found that from October 2001 shortly after the
requirement to publish order execution reports took
effect through July 2005, BRUT published execution
reports that contained critical errors. Specifically, when
subscribers of BRUT's ECN entered orders that included
a "reserve size component." BRUT& treatment of these
reserve size orders resulted in execution reports that did
not include the full size of each such order.. 09/01/2006, Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2006
Alert Notes
Notes: Nasdaq Execution Services, LLC, appears on Financial Industry Reg. Auth. (FINRA) Disciplinary Actions.
Source Information
RDC URL: https://grid.rdc.com/wss/entrty.html?entityld=c756888037d211965d3f3d53eb346cc4
Source Name: RiskConnect. 08/16/2018
Entity URL: • http/Amvw.finra.org/Industry/Enforcement/DisciplinaryActions/MonthlyActions/2014/
• http://www.finra.orgtweb/groups/industry/(gip/(gjenf/©da/documents/disciplinaryactions/p484048.pdf
• http:/Nww.nysecom/pdfs/07-124.pdf
• http://1mnyse.cornaiscAxn/discAxn10_2007.htmiN07-124
Ccosostent was the tams and conOacets of yew ROC Subsaber Apreemat. the racarobco contaned in this document is la alert purposes only and is not lobe used to, Nip:mesa deternnto; an
in0a400rS elk0lbatY ra, any Mel 01 arty Me. FORA antrOSAbea papaw In.' ?UMW 0910•6 10 had such matenal and intamanon n oraea oontOence na to make use thew( one. Man 'Of avhage.1
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a entity relerercod in yowl 'Nary SDNY_GM_00061296 PePe 2 ci 5
IDENTIAL
CONFIDENTIAL - PURSUANT TO FED. R.QPN(F DB-SDNY-0024121
EFTA_00171808
EFTA01297823

rdc
DB12000P - Deutsche Bank Private Bank Alert
Batch Date: 8/17/2018 Alert Date: 8/17/2018
Added to Monitoring: 08/17/2018
Organization: NES. LLC
Address: CA:wiry. UNITED STATES
Tracking ID: KYC Reporting ID:
Alerted Entity ti. 1 of 2 Risk Priority: Critical Alert ID:
• httpliWww.sec.govriitigation/admin/2013/34-69655.pdf
• http://www.finra.orgrindustry/Entorcement/DisciplinaryActions/MonthlyActions/2010/index.htm
• httplAwrw.finra.org/web/groupsrindustry/©ip/(genf/@)da/documentsidisciplinaryactions/p120730.pdf
• http://www.finra.orgrindustry/Enforcement/DisciplinaryActions/MonthlyActions/2006rindex.htm
• http://www.finra.org/web/groups/industiy/@ip/@ent/©da/documents/disciplinaryactions/p017398.pdf
Sources:
• Financial Industry Reg. Auth. (FINRA) Disciplinary Actions 2014. Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2014.
httplAtiww.finra.orgrindustry/Enforcement/DisciplinaryActions/MonthlyActions/2014/
• New York Stock Exchange Disciplinary Actions. New York Stock Exchange Disciplinary Actions.
httpiNvww.nyse.com/regulation/nyse/1022221394131.html
• SEC Administrative Proceedings - 2013. SEC Administrative Proceedings - 2013,
http://www.sec.govriitigation/admin.shtml
• Financial Industry Reg. Auth. (FINRA) Disciplinary Actions 2010. Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2010,
http://www.finra orgrindustry/Enforcement/DisciplinatyActions/MonthlyActions/2010rindex.htm
• Financial Industry Reg. Auth. (FINRA) Disciplinary Actions 2006. Financial Industry Reg. Auth. (FINRA)
Disciplinary Actions 2006,
http://www.finra.orgrindustiy/Enforcement/DisciplinaryActions/MonthlyActions/2006/index.htm
Cassette', was the tenses and cond.:eaor your ROC Subscript' Apreenw et the eqccrrobon contaned in this document is Ion eat purposesonty and is not lobe used to: mimesesof delarnore an
incedquars Ogitulty tor any atat ot any Mug FORA perrnsebb purposes USN tunner egress to hold such matanal an, 'Mama:o n in St reteit tomatoes) net to make use thereof anm Man be asmoreed
amasses, to relate [only to employees requiring six. inform:etas and rot to raase or dectise R to any Mot pany 1r Alai intryniatgof contaned in INS 00507W4 may at Tay not paten to the inthoduai
a entity referenced in your notiry SDNY_GM_0006t 297 rin e 3 ci 5
IDENTIAL
CONFIDENTIAL - PURSUANT TO FED. R.QPN(E DB-SONY-0024122
EFTA_00I71809
EFTA01297824

rdc
DB12000P - Deutsche Bank Private Bank Alert
Batch Date: 8/17/2018 Alert Date: 8/17/2018
Added to Monitoring: 08/17/2018
Organization: NES. LLC
Address: CA1U0 y UNITED STATES
Tracking ID: KYC Reporting ID:
Alerted Entity tt 2 of 2 Risk Priority: Critical Alert ID:
Entity Information
Entity ID:
Riskid: R2234375
Entity Name: National Enterprise Systems Inc.
Alias: • NES
• National Enterprise Systems. Inc.
Address: . CHARLESTON. W.Va.
• West Virginia, UNITED STATES
• Cleveland. Ohio. UNITED STATES
• Solon. Ohio, UNITED STATES
Recent Event(s): • BUS - Business Crimes (Antitrust. Bankruptcy. Price Fixing) / SET - Settlement or Suit. 09122/2010
Attorney General McGraw's Consumer Protection Division sued NES, accusing the company of using
illegal strong-arm debt-collection tactics including telephone harassment and false threats of arrest..
09/222010, Targeted News Service
• AST - Assault, Battery / SET - Settlement or Suit, 09/22/2010
Last year, Attorney General McGraw's Consumer Protection Division sued NES, accusing the company of
using illegal strong-arm debt-collection tactics including telephone harassment. 09/22/2010. Targeted
News Service
Event: • FRD - Fraud, Scams, Swindles / SET - Settlement or Suit, 04/13/2010
Cordray's lawsuit charged NES with engaging in practices that violated Ohio's Consumer Sales Practices
Act (CSPA), 04/13/2010, States News Service
• BUS - Business Crimes (Antitrust. Bankruptcy. Price Fixing) / SET - Settlement or Suit. 09/22/2010
Attorney General McGraw's Consumer Protection Division sued NES, accusing the company of using
illegal strong-arm debt-collection tactics including telephone harassment and false threats of arrest.,
09/22/2010. Targeted News Service
• PRJ - False Filings, False Statements, Perjury, Obstruction of Justice / SET - Settlement or Suit,
06/10/2010
attorney general's Consumer Protection Division sued NES last year. The lawsuit alleged false threats of
lawsuits, arrest and criminal prosecution, and other abuses.. 06/10/2010, Charleston Gazette
• AST - Assault, Battery / SET - Settlement or Suit, 09/22/2010
Last year, Attorney General McGraw's Consumer Protection Division sued NES. accusing the company of
using illegal strong-arm debt-collection tactics including telephone harassment. 09/22/2010. Targeted
News Service
• MIS - Misconduct / SET - Settlement or Suit, 07/23/2009
lawsuit filed for unlawful conduct, including adding unlawful collection fees to tuition owed by students to
West Virginia colleges and universities, 07/23/2009, US FED News
• MIS - Misconduct / SET - Settlement or Suit. 07/22/2009
Ohio Attorney General Richard Cordray sued National Enterprise Systems Inc. of Solon, accusing the
company of harassing Ohioans in its attempts to collect debts. More than 200 consumers have filed
complaints against NES, accusing the company of ..., 07/22/2009, Plain Dealer (Cleveland)
• MIS - Misconduct / SET - Settlement or Suit 07/21/2009
filed a lawsuit against National Enterprise Systems, Inc that allegedly made unlawful threats to several
West Virginians and also alleged a wide range of other unlawful conduct, including adding unlawful
Ccosetent wey the teems and comfortsof max ROC Sulascreet Agreement. the irkerroban oontaned in this document is la atert purposesonly ar4 is not lobe used to: papaws of delwnnirg an
pridatatat6 eegiblity tot any ate, ix any other FCRA pemassies peones Use, tanner Games to hoe suca matenal an, eemmatam A Matra conhOence. not to make 4. thereat Mei man ay mmotemi
surpcsam tO Mat* t Only to efrialeyein requiting SuCh intantatal and ra to release or Malta* rt 10 any omen parly Ire Mtn intlennaten contained n this acmenent may a may not porton to ma indrodual
a entity referenced in your inquiry SDNY_GM_00061298 `Int 4 Ci 5
IDENTIAL
CONFIDENTIAL - PURSUANT TO FED. R.cON(F DB-SONY-0024123
EFTA_00I718i0
EFTA01297825

rdc
DB12000P - Deutsche Bank Private Bank Alert
Batch Date: 8/17/2018 Alert Date: 8/17/2018
Added to Monitoring: 08/17/2018
Organization: NES. LLC
Address: C51Utily UNITED STATES
Tracking ID: KYC Reporting ID:
Alerted Entity it. 2 of 2 Risk Priority: Critical Alert ID:
West Virginians and also alleged a wide range of other unlawful conduct, including adding unlawful
collection fees to tuition owed by stude..., 07121/2009, Targeted News Service
Alert Notes
Notes: National Enterprise Systems Inc. was charged with engaging in practices that violated Ohio's Consumer
Sales Practices Act (CSPA)
Source Information
RDC URL: https://grid.rdc.comNiss/entity.html?entityld=4bef996832530e885d3f3d53eb346cc4
Source Name: RiskConnect, 08/16/2018
Sources:
• Targeted News Service, MEDIA Article.United States.Headline:Attomey General McGraw Sues Ohio
Collection Agency. National Enterprise Systems: Asks Court to Stop Firm from Making Unlawful Threats,
httpllglobal factiva.conYen/du/article asp?NAPC=S&AccessionNo=TARGNS0020090722e57I001jw
• States News Service, MEDIA Article.United States,Headline:OHIO DEBT COLLECTION FIRM TO PAY
CONSUMERS FOR VIOLATIONS OF RIGHTS,
http://global.factiva.corrtien/du/article.aspINAPC=S&AccessionNo=SNS0000020100413e64d002k4
• Charleston Gazette, MEDIA Arhcle,United States,Headline:Justice Robin Davis to speak at UC today,
http://global.factiva.com/en/du/article.asp?NAPC=S&AccessionNo=CGAZ000020100611e66a0005y
• Targeted News Service, MEDIA Article,United States,Headline:Attomey General McGraw Opens Claims
Process for Refunds of Illegal Collection Fees Added to Tuition Debts,
http://global.factiva.cornien/du/article.asp?NAPC=S&AccessionNo=TARGNS0020100923e69m00338
• States News Service, MEDIA Article,United States,Headline:ATTORNEY GENERAL MCGRAW OPENS
CLAIMS PROCESS FOR REFUNDS OF ILLEGAL COLLECTION FEES ADDED TO TUITION DEBTS,
http://global.factiva.cornien/clu/artide.asONAPC=S&AccessionNo=SNS0000020100922e69m003gj
• The Plain Dealer, MEDIA Article,Headline:Attomey general sues debt collector,
http://global.factiva.cornien/du/article.asp?NAPC=S&AccessionNo=CLEV000020090723e57m0000u
• US Fed News, MEDIA Article,Headline:ATTORNEY GENERAL MCGRAW SUES OHIO COLLECTION
AGENCY. NATIONAL ENTERPRISE SYSTEMS,
http://global.factiva.com/en/dutarticle.asp?NAPC=S&AccessionNo=INDFED0020090723e57n0046h
Consistent way the terms and condOcersol year ROC Suteaber Agteemat. the rrtarrobon contained m this document is la atat purposes only and rs not tote used to: purposes of delamntn; an
ondedvats (*gladly for any ate, or any ante FCRA permissbb pareses User twiner agrees to hold such matenai and information o saltiest conhOtece. not to make use thereof other Man 'or atMcotol
Nowa; to relate t only to eroloyees requiring such infornsatcn and rot to release or dachas* et to any omen parry ',neaten information conned iltras document troy a may not paten to me indrodual
a entity referenced in your nquiry SDNY_GM_0006 299 P.Pe $ 015
IDENTIAL
CONFIDENTIAL - PURSUANT TO FED. R.QC.:IN(E DB-SONY-0024124
EFTA_0rtil 7181 I
EFTA01297826