FINRA Sanctions Ross Sinclaire & Associates for Alleged Violations
According to the Financial Industry Regulatory Authority (FINRA) on June 10, the regulator has censured and fined Ross Sinclaire & Associates, a regional broker-dealer that reportedly operates in the mid-west.
According to the Letter of Acceptance, Waiver & Consent, FINRA alleges that Ross Sinclaire did not make required disclosures to investors concerning its municipal offering and the firm allegedly failed to supervise activities relating to stockbrokers’ direct market access.
In March and April of 2014, Ross Sinclaire, while participating as the agent for a private placement notes offering, allegedly created documentation for accredited investors, according to the AWC. In doing so, the firm allegedly failed to disclose the two percent commission that it would reportedly receive from the investors, and it would also be receiving half of the Tax Creditor Lenders revenues derived from consummating the transaction. Further, the firm did not disclose to investors that the issuer’s vice president was also one of the stockbrokers at Ross Sinclaire.
According to FINRA, the proceeds from the private placement were reportedly intended to help fund a film production company.
Between December 2015 and December 2016, relevant investment information that was supposed to have been included in a Private Placement Memorandum had been allegedly omitted by the firm, according to FINRA.
Additionally, FINRA alleged that the firm neglected to create and implement an adequate supervisory system and risk management system to govern its traders’ direct market access.
For FINRA’s full findings see FINRA case # 2017052424001.
This information is all publicly available and provided to you by The White Law Group.
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