According to a Nov. 30, 2012 article in Financial Planning Magazine , The Financial Industry Regulatory Authority (FINRA) has sanctioned eight firms and 10 individuals for selling interests in private placement offerings “without having a reasonable basis for recommending the securities,” the regulatory agency said in a statement. The sanctions included ordering more than $3.2million in total restitution.
The basis for the sanctions included the failure on the firms to properly supervise their agents as well as inadequate due diligence on the investments themselves. FINRA has recently stepped up enforcement efforts in regards to the marketing and sale of private placements in the wake of individual investors losing billions of dollars during the real estate and credit market collapse in 2007 and 2008.
The firms include: NEXT Financial Group of Houston, Texas; Investors Capital Corporation of Lynnfield, Mass.; Garden State Securities of Red Bank, N.J.; Capital Financial Services of Minot, N.D.; National Securities Corporation of Seattle, Wash.; Equity Services of Montpelier, VT; Securities America of La Vista, Neb.; and
Newbridge Securities Corporation of Fort Lauderdale, Fla.
The individuals names include: Kevin John DeRosa, a co-owner of Garden State Securities; Matthew G. Portes, director of alternative investments and director of syndications for National Securities Corp.; Stephen Anthony Englese, senior vice president for securities operations for Equity Services; Brian W. Boppre, a former firm principal for Capital Financial Services; Robin Fran Bush, the former chief compliance officer for Newbridge Securities; Leroy H. Paris II, former president and chief executive officer of Meadowbrook Securities of Jackson, Miss.; and Michael D. “Trusty” Shaw, formerly with VSR Financial Services of Baton Rouge, La.,
The attorneys at Colling Gilbert Wright & Carter are investigating and litigating arbitration claims involving all of the direct private placements mentioned above as well as many other. If you have lost money in a private placement, please contact our office for a free case evaluation. Thank you.