Private Placement Crackdown Spreads Beyond Securities America

Friday, April 08, 2011 06:33
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Private Placement Crackdown Spreads Beyond Securities America

More fines for firms and individual brokers who sold the investment products that ended up dragging Securities America into the courts and eliminated other broker-dealers entirely.

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It looks like FINRA went down the list of brokers who sold debt from Medical Capital, Provident Royalties, and other issuers in order to distribute penalties across the board.

 

Individual fines are smaller than the massive sum that recently looked like it would cripple Securities America, the largest seller of these products. But with several of the brokerage firms that sold the stuff already defunct, it remains to be seen whether it could trigger another wave of bankruptcies.

 

Once again, FINRA notes a lack of due diligence in determining suitability of these products for these brokers' individual clients. 

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