Soreide Law Group, based in South Florida, obtained the following information on FINRA’s website under, “Disciplinary and Other FINRA Actions, November 2016.”
The following three South Florida companies: Double Eagle Securities of America of Tamarac, VFinance Investments of Boca Raton, and TradeSpot Markets of Davie were listed in the report.
Double Eagle Securities of America, Inc. (CRD #43844, Tamarac, Florida)
was censured and fined $10,000 for allegedly failing to provide its clients with an annual privacy notice. The fine was lowered after FINRA considered the firm’s financial resources. Double Eagle was required to send privacy notices to clients between 2011 and 2013. Allegedly the firm failed to set up a written supervisory system and 280 of their clients did not get notices.
FINRA’s findings stated that the firm failed to establish, maintain, and enforce a supervisory system and written procedures reasonably designed to ensure that its mutual fund share class recommendations were suitable in light of its clients’ anticipated holding period, the amount invested, and the sales charges and fees associated with the various share classes.
The firm made purchases of Class C shares for its clients, totaling approximately $286,000. Many of these clients anticipated holding the mutual funds long-term. However, the firm did not have a mechanism to ensure that the share class recommendation was suitable for the customers.
(FINRA Case #2014039407201)
VFinance Investments, Inc. (CRD #44962, Boca Raton, Florida)
was censured, fined $30,500, and required to revise its WSPs for allegedly failing to immediately publish a bid or offer that reflected the price and the full size of client limit orders for OTC equity securities the firm held that were at a price that would have improved the firm’s bid or offer in such securities.
FINRA’s findings stated that VFinance Investments, Inc. supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to the applicable securities laws and regulations, and FINRA rules.
(FINRA Case #2015046509401)
TradeSpot Markets Inc. (CRD #29683, Davie, Florida) and Mark Bedros Beloyan (CRD #1392748)
TradeSpot allegedly engaged in penny stock transactions without complying with the penny stock requirements and the President and CEO, Mark Beloyan, allegedly filled out the dates on some client agreements and entered information on documents after customers had signed and returned the documents to TradeSpot.
TradeSpot was fined $10,000 and a one-year ban was imposed on soliciting and recommending penny stock transactions. TradeSpot also agreed to engage a consultant. Mark Beloyan was suspended from acting as a principal for 50 days and from the securities industry for 10 days.
(FINRA Case #2013037033101)
If you suffered financial losses due to the recommendations of these South Florida firms, call the Soreide Law Group, conveniently located in Pompano Beach, Florida, and speak at no-cost to a lawyer regarding the possibility of recovering your investments at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and operates on a contingency basis.