Institutional Capital Management, Inc., a FINRA registered broker-dealer based in Houston, Texas, recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was fined $65,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that the firm permitted registered persons assigned to a branch office to utilize outside email accounts to conduct firm business, even though the firm did not have a system or procedure in place to capture, preserve and monitor those emails; consequently, the firm failed to preserve all firm-related email communications of registered persons assigned to that branch as required.
FINRA’s findings also stated that the firm failed to perform any supervisory review of email communications of registered persons assigned to that branch. The findings also stated that as a result of the lack of supervision, a representative agent of the firm was able to engage in extensive selling-away misconduct without the firm’s detection, raising more than $5 million from investors through sales of promissory notes without the firm’s knowledge. The findings also included that the firm failed to obtain all required information for some customers who purchased securities through the firm in private placement offerings.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with Institutional Capital Management, Inc., the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
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