The instruments that nearly killed Securities America seem to have been a factor in another broker-dealer's demise.
Securities Network, a Georgia firm, did not sell much of Provident Royalties' private preferred shares, but after investor outrage surrounding private placements forced competitors to shut down, people are now speculating that there's a connection.
This time around, Securities Network was very small, generating under $300,000 in production last year. It's unclear whether it even had a website.
Even in its prime, the $200,000 in Provident securities it sold must have represented a significant slice of its revenue. Losing those sales might've hurt its top line, or else the shadow of litigation might've made it impossible to keep operating as a going concern.
Maybe that's why the firm asked FINRA to retire its licenses. As yet, we just don't know.