Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Girard Securities brokerage disciplined

Mistakenly permitted fraudulent email money transfers

San Diego-based Girard Securities has been censured by the Financial Industry Regulatory Authority for unknowingly permitting fraudulent money transfers from customers' accounts.

The firm, which has 360 brokers and 136 branches, has changed its procedures, reimbursed the clients whose money was stolen, and fired its chief compliance officer. Its chief operations officer resigned.

Sponsored
Sponsored

In 2011 and 2012, Girard's clearing firms issued several alerts about a rise in fraudulent email instructions used to effect fraudulent wire transfers. Two of its customers were getting divorced.

In May of 2012, hackers requested by email that funds from the account be transferred to three third parties — one to a Chinese banking corporation in Singapore and another to an account in Texas.

A Girard employee, who was not aware of procedures regarding possible hackers, responded to the crooks by email — not to those who controlled the accounts.

The Anti-Money Laundering Department of the clearing firm expressed escalating concerns that the recipients of these funds were unable to answer basic questions about the purpose of the wires.

"Girard did not establish and maintain systems and procedures, including written procedures, reasonably designed to prevent fraudulent third party wire transfers," says the Financial Industry Regulatory Authority (known as FINRA).

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

San Diego's Uptown Planners challenged by renters from Vibrant Uptown

Two La Jolla planning groups fight for predominance

San Diego-based Girard Securities has been censured by the Financial Industry Regulatory Authority for unknowingly permitting fraudulent money transfers from customers' accounts.

The firm, which has 360 brokers and 136 branches, has changed its procedures, reimbursed the clients whose money was stolen, and fired its chief compliance officer. Its chief operations officer resigned.

Sponsored
Sponsored

In 2011 and 2012, Girard's clearing firms issued several alerts about a rise in fraudulent email instructions used to effect fraudulent wire transfers. Two of its customers were getting divorced.

In May of 2012, hackers requested by email that funds from the account be transferred to three third parties — one to a Chinese banking corporation in Singapore and another to an account in Texas.

A Girard employee, who was not aware of procedures regarding possible hackers, responded to the crooks by email — not to those who controlled the accounts.

The Anti-Money Laundering Department of the clearing firm expressed escalating concerns that the recipients of these funds were unable to answer basic questions about the purpose of the wires.

"Girard did not establish and maintain systems and procedures, including written procedures, reasonably designed to prevent fraudulent third party wire transfers," says the Financial Industry Regulatory Authority (known as FINRA).

Comments
Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

SDSU pres gets highest pay raise in state over last 15 years

Union-Tribune still stiffing downtown San Diego landlord?
Next Article

Top Websites To Buy Instagram Likes + Bonus Tip!

Comments
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.