San Diego, California
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
Madison Avenue Securities, Inc. (CRD #23224, San Diego, California) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $12,500.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that its registered representative participated in private securities transactions through the offer and sale of private placement offerings. The findings stated that at the time the representative became registered with the firm, he provided written notification to the firm that he was the owner and manager of an entity, which was engaged in a private offering of securities that he participated in selling, and that he intended to form another entity and commence a related private offering. The representative further informed the firm that he acted as the portfolio manager with respect to funds raised in the offerings and had an opportunity to profit from the portfolio transactions at the conclusion of the investment period.
In connection with the private securities transactions, he signed the private placement memorandum and the subscription documents as manager on behalf of each issuer. The offerings raised approximately $10,704,805 from several retail investors, and $3,486,087 from an institutional investor.
The findings also stated that the firm acknowledged the
representative’s association with the issuers of the private placement offerings as an outside business activity, but failed to record the transactions on its books and records and failed to supervise his conduct with respect to these private securities transactions. (FINRA Case #2011028857601)
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.
Rex Securities Law , located in Boca Raton, FL, 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.
561 391 1900