WFP Securities of San Diego notified the Financial Industry Regulatory Authority (FINRA) this week it would be shutting down operations. According to documents filed in court proceedings, the firm had sold over $30 million dollars of private placements in Medical Capital Holdings, Inc. and Provident Royalties LLC. Both companies have been charged with fraud. Estimates place claims against WFP at approximately $14 million although a FINRA broker check for the firm indicates no claims currently in litigation.
WFP is just latest independent broker dealer to fail under the weight of private placement sales which have cost investors hundreds of millions of dollars. Investors have alleged the broker dealers did not due adequate due diligence before selling the placements to their clients.
If you have lost money due to an investment in Medical Capital, Provident Royalties or other private placements, please contact our office for a free case evaluation.