| 18 August 2009

FINRA gave Maximum Financial of Southfield, Michigan the heave-ho today for repeated violations in its retail foreign currency business. In an announcement, FINRA said it is permanently expelling CEO and Chief Compliance Officer Christopher Paganes from serving in any principal capacity at a securities firm.

More than $15 million had been deposited into Maxim accounts between January and May 2008 which Maxim then failed to record on its books. Among other violations, Maximum failed to determine the amount of funds it needed behalf of the forex customers to safeguard their deposits.

FINRA had warned Maximum that disciplinary actions were pending and yet the firm failed to correct any of the issues raised by the regulatory agency. The National Futures Association was not involved in the investigation.

"The growing retail foreign currency market presents significant risks to individual investors," said Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement. "Firms that participate in forex activities must be diligent in adhering to all applicable rules in order to protect their customers' financial interests. The failures of Maximum and its CEO to comply with net capital, customer protection and anti-money laundering rules exposed customers to unnecessary risks."