Salt Lake City Firm, Bruce A. Lefavi Securities Censured and Fined by FINRA

Soreide Law Group obtained the following information from the January, 2018 FINRA Disciplinary Report:
Bruce A. Lefavi Securities, Inc. (CRD #10684, Salt Lake City, Utah) 
was censured and fined $25,000 for allegedly preparing four retail communications and distributing them to numerous clients containing content that pertained to Real Estate Investment Trusts (REITs) and/or Business Development Companies (BDCs), which failed to completely identify the risks associated with investing in REITs/BDCs, failed to provide sufficient detail to allow clients to evaluate the investments and, in some instances omitted material information.
FINRA’s findings stated that one of the retail communications compared the subject BDC to bond funds without identifying and explaining the material differences between the two products.
Also, FINRA’s findings stated that Bruce A. Lefavi Securities did not establish and maintain a reasonable supervisory system and WSPs regarding the appropriateness of fee-based accounts and charges associated with those accounts. Specifically, the firm had no procedures that addressed whether advisory products and services offered to its clients by its affiliated investment advisor and charges paid by its clients for those advisory services were reasonable and appropriate.
According to FINRA, approximately 99 percent of the Bruce A. Lefavi Securities’ clients also had accounts with its affiliated investment advisor. All of the clients’ purchases of REITs and BDCs were processed through the firm, and the clients were charged a commission. For clients who also had accounts with the affiliated investment advisor, the REIT and BDC securities were subsequently transferred to the clients’ accounts at the affiliated investment advisor and the dollar value of the securities became subject to an annual asset management fee.
(FINRA Case #2015043353301)
If you were a client of Bruce A. Lefavi Securities, Inc. of Salt Lake City, and experienced losses due to their actions or recommendations, contact Soreide Law Group and speak at no cost to a securities lawyer regarding the possibility of recovering your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis—no fee if no recovery.  Let our years of experience work for you.