Broker Settles FINRA Charges for Failing to Timely Report Private Offerings

A securities broker settled FINRA charges for failing to timely report the sale of private placements by its registered representatives.

In a Letter of Acceptance, Wavier, and Consent, FINRA alleged that the broker failed to timely file offering documents related to eight private offerings that it sold within 15 days of the first sale, as required by Rule 5123 ("Private Placements of Securities"). FINRA found that the broker made the required regulatory filings an average of 88 days late.

As a result, the broker was found to be in violation of FINRA Rule 5123 and Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker agreed to (i) a censure and (ii) a $20,000 fine.