Students defrauded into financing fictitious AI-powered hedge fund
Firms use forced arbitration to discourage clients from pursuing complaints
SRO panel found the rep opened banking products, including a line of credit, in the client's name
SEC, DoJ file allegations against HyperFund promoters
Tribunal accepts settlement with crypto project founders, including more than $1.5 million in sanctions
The panel found a rep's misconduct to be serious, but not fraudulent or deceitful
Former rep admitted to misappropriation
Panel said penalty should be bigger than regulator requested
After partly overturning SRO's ruling, tribunal reduces fine, disgorgement orders
Firms were allowed to collect trailers before the CSA ban, court rules