Torch Securities Fined by Securities Regulators
May 2022-Sugar Land, TX
Torch Securities is a broker dealer located in Sugar Land, TX that does investment banking, merger and acquisition work and sells private placements and limited partnerships. The company has been a FINRA member since 2005.
In May of 2022, FINRA alleged that Torch Securities failed to establish and maintain written supervisory procedures reasonably designed to ensure that the firm complied with its due diligence obligations and failed to conduct reasonable due diligence into three private placement offerings in violation of FINRA Rules 3110- and 2010.
The three private placements at issue were sold between January 2019 and November 2019. According to FINRA, rather than conduct an independent investigation, Torch Securities relied almost exclusively on documentation and information provided by the the issuer.
Torch Securities was censured , paid FINRA a fine of $17,500 and required to implement supervisory systems and procedures to resolve the regulatory matter.
Private placements are extremely speculative in nature. The risk associated with these investments is only suitable for those
individuals who understand and are financially capable of taking the
risk inherent to these products. If you were sold an oil & gas investment based upon misrepresentations, such as the inaccurate representation of the production of wells in the target area, or if this type of investment is unsuitable for a person your age and profile, you may be able to recover all or a part of your losses through FINRA arbitration.
If you have questions about losses in your brokerage or investment account, contact us for a no charge consultation to explore your legal rights.
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