Halen Capital Management Inc of Clearwater Florida Censured and Fined $100,000 by FINRA

The Florida-based Soreide Law Group obtained the following information on FINRA’s website under, “Disciplinary and Other FINRA Actions, May 2016.”
Halen Capital Management, Inc. (CRD #135966, Clearwater, Florida)
was censured; fined $100,000; shall, within 45 days of the acceptance of the AWC, provide a written notice to each affected investor that he/she has the right to surrender his/her shares obtained in a company’s private offering in return for a refund of his/her original investment; and shall retain, within 45 days of the acceptance of this AWC, an independent consultant to conduct a comprehensive review of the adequacy of the firm’s policies, systems and procedures (written and otherwise) and training relating to private placements, advertising, annual chief executive officer (CEO) certifications, member private offerings and Section 5 of the Securities Act of 1933.
Aledgedly, Halen Capital Management, according to FINRA’s report, distributed confusing and misleading offering documents for unregistered common stock offered by a company.
FINRA’s findings stated that the firm distributed a private placement memoranda (PPM) for the company that did not comply with FINRA rules governing member firm communications with the public. The documents created a substantial risk that investors could be confused or misled, were not fair and balanced, and did not provide a sound basis for evaluating the facts relevant to the company’s securities being offered.
Also, FINRA’s findings stated that Halen Capital Management participated in the sale of unregistered and non-exempt securities in contravention of Section 5. The firm participated in sales of the company’s stock to non-accredited investors, not all of whom were sophisticated. The non-accredited investors were not provided with all of the written financial disclosures required to satisfy applicable rules.
FINRA’s findings also included that Halen Capital Management failed to file the company’s offering documents with FINRA before providing them to prospective investors after the company acquired and became a controlling entity of the firm.
FINRA found that the firm maintained inadequate supervisory systems relating to Halen Capital Management participation in private placements and communications with the public. FINRA also found that firm failed to have its CEO make annual supervisory certifications required by FINRA.
(FINRA Case #2013038612301)
If you were a client of Halen Capital Management and suffered financial losses due to your broker or financial advisor’s recommendations, call the Florida-based Soreide Law Group for a free consultation with an attorney regarding the possibility of recovering your losses at:  888-760-6552.
Soreide Law Group represents clients nationwide on contingency and advances all costs. We are committed to recovering our clients’ losses due to the negligence or fraud of their stock brokers or financial advisors.