Merrimac Corporate Securities, Inc. (CRD #35463, Altamonte Springs, Florida) recently was fined $18,500. The National Adjudicatory Council (NAC) imposed the sanction following appeal of an Office of Hearing Officers (OHO) decision. The sanction was based on findings that the firm sold private placements, real estate investment trusts (REITs), limited partnerships and direct participation programs not authorized by its FINRA membership agreement, and that the sale of each was a material change in its business that required the filing of an application for approval of a change in business operations and FINRA approval.
The findings stated that the firm failed to establish, maintain and enforce supervisory procesures to supervise the sale of these products and variable annuities. The findings also stated that the firm failed to maintain adequate books and records with respect to emails by willfully failing to preserve all business-related incoming emails and internal emails, willfully failing to preserve emails in an easily accessible place, willfully failing to preserve emails in a nonerasable, non-rewritable format, and failing to notify FINRA that its emails would be maintained on electronic storage media. FINRA found that the firm failed to make and keep current blotters for its direct application mutual fund and variable annuity businesses.
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 Merrimac Corporate Securities, 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.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
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