Broker-Dealer Wounded By Private Placements Winds Down, But Not Before Finding 100 Advisors A New Home

Sunday, August 07, 2011 21:16
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Broker-Dealer Wounded By Private Placements Winds Down, But Not Before Finding 100 Advisors A New Home

Tags: fraud | sec

Another of the brokerage firms that sold plenty of the products that almost ended Securities America has folded, but this time management found a place for its reps to go. 

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Minnesota firm Workman Securities has reportedly shut down

 

The firm's last SEC filing reveals that it earned a whopping $37,923 profit last year on revenue of barely $15 million -- $12 million of which went to its 100 reps in commissions.

 

Coming after last year's litigation-driven losses, the company's cash holdings had fallen to $286,000 and it faced up to $11 million in potential liabilities from selling bad investments from Medical Capital Corp. and Provident Asset Management.

 

At this point, apparently the possible cost of a settlement was still more than the company was worth to its two owners. So they shut down.

 

But at least in their case, they brokered a deal with Allied Beacon Partners to take their reps and make sure their transition was as smooth as possible.

 

 

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