The Financial Industry Regulatory Authority (FINRA) has fined Cantor Fitzgerald & Co. $6 million for selling billions of unregistered microcap shares.
FINRA found that Cantor Fitzgerald & Co.’s supervisory system did not reasonably determine whether the microcap securities that it was liquidating for clients were registered with the Securities and Exchange Commission or exempt. Furthermore, FINRA found Cantor Fitzgerald & Co filings that contained insufficient guidance and inadequate training about when or how to inquire into whether a sale was exempt and inadequate tools for supervisors to identify red flags.
In addition to the fine, Cantor Fitzgerald & Co. was ordered to pay disgorgement of nearly $1.3 million in commissions, plus interest.
The foregoing information, which is publicly available on FINRA’s website, has been provided by The White Law Group.
Brokerage firms have a supervisory responsibility to adequately monitor activity and transactions of their customer accounts. If a firm fails in their supervisory duty or violates state/federal securities law they may be liable for investment losses.
If you incurred investment losses on microcap securities purchased through Cantor Fitzgerald & Co , The White Law Group may be able to help. For a free consultation with a securities attorney, please call (312)238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, IL and Vero Beach, FL.
To learn more about the firm, visit www.WhiteSecuritiesLaw.com.