Newbridge Securities Corp. was censured and fined $20,000 by the Financial Industry Regulation Authority (FINRA) for failing to provide proper information to clients. Newbridge negligently permitted staff “to sell securities in private placement offerings to customers” without providing necessary facts, FINRA said. Newbridge consented to FINRA’s sanctions without admitting or denying its findings.
Frank A. Gutta of Plantation, agreed to a two-year suspension by FINRA without admitting or denying its findings. FINRA said he started a corporation to collect money to finance investments in various small businesses. Gutta ran the corporation for more than four years without telling the brokerage where he worked, according to FINRA. Gutta ended up selling $2.9 million in promissory notes for the company that he set up. His clients included customers from his employer, the brokerage. But it “did not sponsor or approve the promissory notes,” FINRA said.
The article states that FINRA also found Gutta recommended the promissory notes to a client “without having a reasonable basis to believe the investment was suitable for her; the customer invested a total of $235,000 in notes, which was inconsistent with her stated investment objective and risk tolerance.” His suspension started Sept. 19 and is in effect until Sept. 18, 2013.
Michael Jefferson Harper, of Coral Springs was barred from working at a brokerage because he failed to respond in a timely manner to FINRA requests for information and failed to testify as the agency requested.
The SEC, U.S. Securities and Exchange Commission, has empowered FINRA to police brokerages and brokers and to sanction companies that violate the regulator’s rules of doing business.
Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced a loss through Newbridge Securities Corporation of Ft. Lauderdale, FL, Frank A. Gutta, Plantation, FL, or Michael J. Harper, Coral Springs, FL, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.