Broker-Dealer Fined for Failing to File Required Information on Private Placement Offerings

A broker-dealer settled charges with FINRA for failing to file required information in connection with private placement offerings sold to retail investors.

In a Letter of Acceptance, Waiver and Consent, FINRA stated that the broker-dealer had acted as placement agent in four offerings that the firm sold to a total of 34 retail investors. FINRA stated that the firm failed to (i) file "a copy of any private placement memorandum, term sheet or other offering document, used in connection with such sale within 15 calendar days of the date of first sale" or (ii) "notify FINRA that no such offering documents were used." FINRA concluded that the broker-dealer violated FINRA Rules 5123 ("Private Placements of Securities") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to (i) a censure and (ii) pay a $10,000 fine.