THOMAS MICHAEL RENSVOLD at EMPIRE STATE FINANCIAL, INC. – View Complaints, Disclosures, Scams and Audit Report (Updated 2023)

Disclosure #1 for THOMAS RENSVOLD

• • eventDate: 10/16/2020
  • Disclosure Type: Regulatory
  • Disclosure Resolution: Final
  • Disclosure Detail :: DocketNumberFDA: 2017052478901
  • DocketNumberAAO: 2017052478901
  • Initiated By: FINRA
  • Allegations: Without admitting or denying the findings, Rensvold consented to the sanctions and to the entry of findings that he failed to establish and implement an AML compliance program reasonably designed to detect and cause the reporting of suspicious activity. The findings stated that Rensvold, as his member firm’s AML compliance officer, had full responsibility for the firm’s AML program, and was responsible for monitoring the firm’s compliance with AML obligations, overseeing AML-related communication and training for employees, and filing SARs. Although the firm’s business model changed dramatically, Rensvold did not take reasonable steps to establish and implement an AML program tailored to the firm’s new business lines. Although the AML procedures listed types of securities transactions that could be considered red flags, including wash or cross trades and transactions involving penny stock companies, there were no procedures as to how the firm would review for red flags related to its low-priced securities business. Further, Rensvold failed to reasonably train the firm’s employees regarding how to conduct reviews for suspicious transactions. The firm did not use any exception reports or automated tools to monitor customer account activity for suspicious transactions, including transactions in accounts of customers located in high-risk jurisdictions or who traded in low-priced securities. The firm’s review for potentially suspicious transactions was limited to a manual review of transactions. This manual review was unreasonable given the growth and complexity of the firm’s new business lines. The firm’s failure to implement an AML program reasonably tailored to its new business lines resulted in potentially suspicious transactions going undetected.
  • Resolution: Acceptance, Waiver & Consent(AWC)
  • SanctionDetails :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
  • SanctionDetails :: Amount: $10,000.00 Sanctions: Suspension
  • SanctionDetails :: Registration Capacities Affected: any principal capacity
  • Duration: one month
  • Start Date: 11/16/2020
  • End Date: 12/15/2020
  • Broker Comment: I was hired `by CEO Santos as a part time GP and CCO 4/2015 for an institutional broker. At the end of November of same year the accounts of Track Securities. I immediately saw the need for an AML and CIP provider, MacDonald Information Systems and received approval to execute a contract. CEO thereafter refused to pay the fee. I also strongly recommended a WSP vendor and I was refused, I continued to lobby for this. At this juncture MD, Operations Manager and Trading Manager Neblett was brought on. Thereafter the firm’s FINRA firm contact system on FINRA was updated regarding AML as follows listing as follows: 1. Rensvold, 2 SANTOs 3.Neblett as such, given Rensvold’s part time status divided workflow With Neblett being responsible for trading review and Santos being responsible for CIP program. There was a culture clash and CEO refused to pay for any program and Neblett insisted that that the firm’s clearing broker was responsible for this, as it had been at his prior firm, but could not produce a contract. CEO Santos overruled my recommendations. Using 20 20 hindsight I should have resigned my position or taken other action with the firm’s owner in brazil, however there was a serious language barrier. As such I did not have full responsibility for the firm’s AML program. AML education was done on an annual basis and included all facets including red flags.