BrokerBank Securities, Inc. and Broker Fined and Censured by FINRA Over Misleading Press Releases

Soreide Law Group (888-760-6552) obtained the following information from FINRA’s website under, “Disciplinary and Other FINRA Actions, July 2016.”
BrokerBank Securities, Inc. (CRD #130116, Minnetonka, Minnesota) and Philip Paul Wright (CRD #2453688, Eden Prairie, Minnesota)
BrokerBank Securities, Inc. was censured and fined, jointly and severally, $15,000 with Philip P. Wright. Wright was separately fined $10,000 and suspended from association with any FINRA member in any capacity for one month. A lower fine was imposed against the firm after considering, among other things, its revenue and financial resources.
Allegedly, BrokerBank Securities, Inc., acting through Philip P. Wright, issued hundreds of misleading press releases. FINRA’s findings stated that the press releases, which referenced research reports on specific companies, falsely implied that the firm was the author of the research when, in fact, it was not; and in some instances, falsely implied that the firm was recommending securities covered in the research report when, in fact, it was not.
According to FINRA, BrokerBank Securities, Inc., acted as a conduit for a non-registered entity, which paid the firm a fee per press release to submit the press releases to a newswire service. The firm fronted for the non-registered entity because the newswire service would only accept press releases from a registered broker-dealer or from the covered companies themselves. A number of the press releases failed to disclose that BrokerBank Securities, Inc. was being paid to issue the press release.
FINRA’s findings also stated that Wright, who was both the Chief Executive Officer and Chief Compliance Officer of the BrokerBank Securities, Inc., was responsible for ensuring that the firm had adequate written procedures and an adequate supervisory system to ensure that the press releases complied with NASD®/FINRA rules, neither of which the firm had in place. Wright failed to establish such written policies or supervisory system relating to the press releases.
The suspension is in effect from June 20, 2016, through July 19, 2016.
(FINRA Case #2014041087701)
If you’ve experienced losses due to the recommendations of your broker/dealer or financial advisor, contact Soreide Law Group for a no-cost consultation with a lawyer regarding the possibility of recovering your losses at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency fee.