Financial Industry Regulatory Authority Enforcement Director Brad Bennett said Tuesday the biggest change he has seen since the meltdown is that no major orchestrated frauds by large brokerages have cropped up.

He said Ponzi schemes are still popping up, but none on a Madoff scale.

Looking at the current enforcement landscape, Bennett said his staff is finding a lot of anti money laundering activity. “That’s what lets in market manipulation, penny stock liquidation,” the Finra attorney said.

Bennett said he will not pursue a violator if the Securities and Exchange Commission or state regulators are going after the same individuals and the same firms for the same acts.
 
“If there is no reason for us to be in a case, we won’t be there just to collect fines,” said Bennett.

On cyber security, Bennett said his focus is on hundreds of mini cyber security violations rather than big frauds

“When people leave firms it is not uncommon for brokers to steal customer information and bring it with them,” he said.

Bennett’s comments were made at a seminar sponsored by the DC Bar Association.