FINRA recently announced that CP Capital Securities, Inc., a registered broker-dealer based in Miami, Florida, has been fined $21,500 for various securities violations. Without admitting or denying the findings, CP Capital Securities, Inc. consented to the entry of findings that it acted as the placement agent for a contingency offering of securities; failed to satisfy the minimum contingency of the offering by the closing date, failed to terminate the offering and return investor funds; extended the offering period; and raised additional funds, but failed to send written reconfirmation offers to investors regarding the extension and material updates prior to the closing date. The findings further stated that the CP Capital Securities, Inc. failed to establish a proper escrow account in connection with the offering and directed a premature release of investor funds from the escrow account prior to satisfying the offering contingency requirements. CP Capital Securities also made improper payments to non-registered foreign entities for referrals of customers, nor did the firm obtain written acknowledgement of the existence of the compensation arrangement. Finally, the findings also included that CP Capital Securities failed to implement its anti-money laundering compliance program, in that it failed to monitor transactions for red flags.
According to CP Capital Securities FINRA Broker Report (CRD), this is not the first time the firm has been fined by FINRA. FINRA fined CP Capital Securities $5,000 in 2004 for violations of the Florida Securities Act (Fla. Stat. 517).
According to CP Capital Securities’ website, CP Capital Securities’ clears its trades through National Financial (NF), a fully owned subsidiary of Fidelity Investments. CP Capital Securities further claims that this provides it with direct access to Institutional FundsNetworkSM, one of the industry’s largest fund platforms.
If you have questions about investments you made with CP Capital Securities, or if you believe that you have been the victim of a securities fraud, the securities attorneys of The White Law Group may be able to help. For a free consultation, please call the firm at 561-807-6804.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.