Private Placements Claim Another Brokerage Firm?


There's nothing on WFP Securities' public record or site yet, but the firm has reportedly told FINRA that it's winding down its business.


Speculation is that the $33 million in private offerings from now-tainted firms Medical Capital Holdings and Provident Royalties was a factor in management's decision to shut down.


As yet there hasn't been much buzz about those securities -- or any lawsuits associated with them -- dragging WFP under. The firm's last SEC FOCUS report only alluded to a looming arbitration claim and FINRA investigation that could cost over $14 million.


For a firm that only had a net $88,000 in shareholders equity last June, that kind of legal bill could be fatal.


And since WFP generated gross revenue of $2.4 million last year -- and had to kick half of it back to its corporate parent -- it's far too small to raise that much cash fast.





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