Moody Securities Sanctioned by FINRA Over REIT Sales-Houston, TX

Moody Securities Sanctioned by FINRA Over REIT Sales-Houston, TX

Moody Securities Sanctioned by FINRA Over REIT Sales-Houston, TX 150 150 Robert Rex, Esq.

January 2024, Houston, Texas 

Moody Securities, LLC,  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that it violated FINRA rules  governing underwriting compensation by acting as the wholesaling dealer-manager of the offering of interests in a real estate investment trust (REIT), in which the underwriting compensation exceeded 10% of the offering’s gross proceeds. FINRA found that total underwriting expenses were nearly 24% of the gross proceeds of the offering.

The findings state that the company’s written supervisory procedures were inadequate.

Moody Securities  was censured and ordered to pay $350,000 to the Moody National REIT to be distributed to the investors in the Moody REIT offering. 

FINRA Case # 2012032734401

Moody Securities has been a FINRA member since 2009 and is located in Houston, Texas. They have 11 registered representatives, no branch offices and are primarily engaged in acting as a wholesaling dealer-manager for two securities offerings by Moody National REIT I.

See this for more information on REITs and Other Alternative Investments

Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk. For more investigations involving Alternative Investments, see this.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

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