Tag Archives: etf

Recovery Options for Investors Purchasing Private Placements From World Equity Group

If you have losses on private placement investments or exchange traded funds (ETFs) purchased from World Equity Group, we may be able to help you recover damages.

World Equity Group was censured and fined $225,000 by the Financial Industry Regulatory Authority (FINRA) in February 2015 for various issues, including:

  • failure to comply with the Bank Secrecy Act
  • failure to adequately investigate the restrictive nature of certain stocks deposited
  • deficiencies with their email communication systems
  • failure to establish and maintain customer suitability records
  • inadequate system to ensure suitability of non traditional Exchange Traded Funds (ETFs)
  • inadequate due diligence in connection with private placements

FINRA AWC No. 2012030734701

Inadequate Due Diligence on Private Placement Offerings

FINRA noted that from July 2009-January 2012, World Equity Group conducted at least eight private placement options (including Newport Digital Technologies), raising over $6 million. From August 2010 to July 2012 World Equity Group conducted at least five non-traded real estate investment trust (REIT) offerings, selling more than $3 million worth.

While FINRA noted that due diligence files were maintained , there was insufficient documentation demonstrating whether the due diligence reports were actually reviewed by anyone at World Equity Group. FINRA also suggested that there was a potential conflict of interest between the issuers of the private placements and the third party diligence providers.

World Equity Group has been a FINRA member since 1992. They are based in Arlington Heights, Illinois and have about 160 brokers in 68 branch offices.

Investors with losses on private placements and/or ETFs purchased from World Equity Group may be able to recover damages through FINRA arbitration.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Summit Brokerage Services (Boca Raton) Fined $250,000 by Regulators- ETF Sales

December 2, 2015- Boca Raton, FL

Summit Brokerage Services  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that between June 2009 and December 2010, Summit recommended leveraged and inverse exchange-traded funds(  ETFs)  to certain customers without fully understanding the features and risks associated with them. Summit allowed their brokers to make unsuitable recommendations to purchase nontraditional ETFs to certain customers by failing to conduct adequate due diligence on the products.

AWC No.  2011029635101

Summit Brokerage Services was censured , fined $250,000 ordered to pay restitution of nearly $10,000.

If you have losses in an account at Summit Brokerage Services, contact us to find out how you may be able to recover damages through FINRA arbitration. 

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870