In June 2025, Arbeit refused to produce information and documents as requested by FINRA staff pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010. For this misconduct, Arbeit is barred from association with any member firm in all capacities.

From March 2021 to March 2023, Du was included on thousands of WeChat messages to or from other Velox Clearing LLC personnel, including senior executives, and Velox customers relating to the firm’s business, many of which he sent. The firm neither supervised nor retained the messages. By causing Velox to maintain incomplete books and records, Du violated FINRA Rules 4511 and 2010 and is suspended for two months in all capacities, fined $7,500, and required to complete five hours of continuing education.

Velox Clearing provides clearing services to a number of foreign financial institutions that transact in thinly traded, low-priced securities through omnibus accounts. Since January 2019, Velox failed to establish and implement an AML program reasonably designed to detect and cause the reporting of suspicious transactions given this business, in violation of FINRA Rules 3310 and 2010. As a result, the firm failed to detect or investigate red flags of spoofing, layering, bid support, and marking the close.