Saint Louis, Missouri
According to publicly available records, in July 2015, Rainmaker Securities , (CRD# 132995) , and its President Glen Anderson (CRD#5030000) entered into a Letter of Acceptance Waiver and Consent with FINRA to resolve allegations that from June 2011 through September 2014, Anderson failed to devote adequate time, attention and resources toward compliance and supervision in connection with the sale of certain unregistered private offerings. AWC 2013035059001.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
FINRA alleged that during 2011, there was inadequate due diligence performed on the following unregistered private placements offered to customers by Rainmaker Securities:
- Buttonwood Social Network Fund ( “Facebook Fund”)
- Eudora Global LLC
- The Incubation Factory Technology Fund LLC (TIF Fund)
- The Idea Fund
FINRA made additional allegations related to the sale of the offerings, including:
- Improper general solicitation in connection with Regulation D offerings and failure to enforce the firm’s written supervisory procedures.
- Distribution of inaccurate, misleading and exaggerated communications.
- Allowing unregistered persons to engage in activity requiring registration.
- Failing to register a branch office.
- Failure to enforce compliance related to customer suitability information.
- Violations related to the company website and email.
Rainmaker Securities has six branches and 34 registered representatives.
Rainmaker Securities was censured and fined $125,000. Anderson was fined $10,000 and suspended for two months.
In 2016 Rainmaker Securities was sanctioned by Illinois securities regulators for failing to supervise the sales activities of one of its brokers who sold direct investments and limited partnership investments.
If you have questions about investments you made in an account at Rainmaker Securities , call for a no charge consultation.
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.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900