FINRA fined Velocity Capital $125,000 for supervisory failures spanning six years, the CFTC ordered over $14 million in penalties for misappropriation of confidential information and illegal kickbacks, and the OCC approved branch and control changes at Wells Fargo, JPMorgan Chase, and Fifth Third across 44 total events.

FINRA Sanctions Velocity Capital for Supervision Failures

FINRA fined Velocity Capital, LLC $125,000 and censured the firm (Case No. 2020065592401) for a pattern of supervisory failures stretching from January 2016 through November 2022. The violations were multi-layered: the firm failed to reasonably evaluate six disclosed outside business activities in violation of FINRA Rules 3270.01 and 2010, failed to respond to red flags that representatives were engaged in undisclosed OBAs, and failed to supervise four private securities transactions in violation of FINRA Rules 3280 and 2010.

Additionally, FINRA found that from July 2016 through the present, Velocity Capital failed to supervise or preserve business-related communications on unapproved platforms — a violation of Exchange Act Section 17(a), Rule 17a-4, and FINRA Rules 3110 and 4511. Off-channel communications enforcement has been one of the industry's most active regulatory themes, with combined fines across the sector exceeding $2 billion since 2021. Velocity's case adds another chapter to that trend.

Three additional FINRA actions were also recorded on the day, reflecting the regulator's continued disciplinary pace heading into February.

CFTC Orders $14 Million in Texas Misappropriation Case

The Commodity Futures Trading Commission ordered a Texas resident to pay over $14 million for misappropriation of confidential information and illegal kickbacks — one of the larger individual penalties in the CFTC's recent enforcement history. The CFTC also designated Xchange Alpha LLC as a contract market, expanding the roster of registered exchanges, and issued a staff interpretation on legacy swap status that could affect how pre-Dodd-Frank swaps are classified going forward.

The combination of enforcement, market structure, and interpretive guidance in a single day illustrates the breadth of the CFTC's regulatory agenda as derivatives markets evolve.

First Horizon Advisors Elevates CCO to President

First Horizon Advisors, Inc. (CRD 17117) in Memphis promoted Karen Morton Kruse (CRD 2862059) from Chief Compliance Officer to President. The CCO-to-President path mirrors what Oddo BHF New York would execute weeks later in March — compliance leaders moving into firm leadership positions. At First Horizon, the promotion signals that the firm's parent bank holding company is elevating compliance-minded executives to run the advisory subsidiary.

Meanwhile, American Global Wealth Management (CRD 7388) reversed its prior day's CEO-to-President retitling, changing James Randall Webb (CRD 2089446) back from President to CEO — a same-day correction that suggests the original filing may have been made in error.

OCC Approves Branch and Control Changes at Major Banks

The Office of the Comptroller of the Currency processed 11 actions spanning branch establishments, control changes, and fiduciary powers. Dayforce National TR Bank received a Change in Bank Control approval. Wells Fargo Bank, N.A. had both a branch establishment approved and a relocation approved. Fifth Third Bank, NA received two branch establishment approvals. JPMorgan Chase Bank, NA added a new branch. Pathward, NA consummated a business combination. Investar Bank, NA closed a branch. Davidson TC and Huntington NB received fiduciary powers designations.

The breadth of OCC activity across six institutions reflects the steady pace of physical network optimization at the nation's largest banks — balancing new branch openings with selective closures.

SEC Suspends Trading, Dismisses CryptoFed Proceedings

The SEC issued three announcements: a trading suspensions update, a notice of pending administrative proceedings, and an order dismissing proceedings against American CryptoFed DAO LLC. The CryptoFed dismissal closes a chapter on one of the more unusual SEC enforcement targets — a decentralized autonomous organization that had sought to register two tokens as securities.

Across the Wire

Thirteen RIA disclosure events were recorded, predominantly bankruptcy record removals — consistent with start-of-month processing cycles when aging disclosures expire. Two RIA firms completed their SEC registration graduation, while two failed the 120-day process. Sun's Brothers Securities Inc. (CRD 123531) filed a FOCUS Report. Two role changes rounded out the broker-dealer activity.

All data sourced from FINRA BrokerCheck, SEC EDGAR, CFTC, OCC, and the Finleet Terminal as of February 2, 2026. Entity profiles are available at terminal.finleet.com.