August 2016- Austin, Texas
The Texas State Securities Board (TSSB) entered a Disciplinary Order against Valor Capital Management, reprimanding the firm and assessing a fine of $48,000.
According to the Order, Valor Capital failed to enforce its written supervisory procedures regarding block trades of stock placed for its president, Robert Mark Magee.
Block trading allows an investment adviser to place an aggregate order of stocks for multiple clients. The clients receive the stock at an average share price. Once the trade is filled the adviser allocates the shares ordered by the clients.
Valor Capital’s supervisory procedures require pre-allocation of shares purchased in block trades as well as retention of the allocation records.
According to TSSB, Magee didn’t always pre-allocate block trades and did not retain a record of how many block trades he participated in which were allocated ahead of the trade.
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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