Investors rely on the accuracy of account statements and trade confirmations when making financial decisions and on the accuracy of Forms 1099 when calculating taxes owed. From approximately 2012 to 2023, a series of technical issues caused VMC to communicate inaccurate information to customers relating to the cost basis of their investments in account statements, trade confirmations, and in Forms 1099 in violation of FINRA Rules 2210, 4511 and 2010.

From at least March 2023 to July 2023, a TIS registered representative (Representative A) engaged in improper cancel and rebill activity when he canceled trades he placed in his personal TIS brokerage account and later rebilled them to certain of his customers’ brokerage accounts, without the customers’ knowledge or authorization, causing those customers to incur significant losses. TIS failed to reasonably identify and investigate red flags of Representative A’s improper cancel and rebill activity.