MCM Securities of New York Censured and Fined by FINRA

MCM Securities LLC (CRD #41571, New York, New York)
was censured and fined $25,000 by FINRA following allegations that between April 2014 and June 2016, the firm distributed a total of 44 copies of offering documents in connection with the sale of three unregistered offerings of limited liability companies that were formed to build, own and operate rental properties that failed to disclose that the sole member of the manager of each of the issuers also indirectly controlled MCM Securities through ownership interests in the firm’s parent companies.
FINRA’s findings stated that by failing to disclose in the offering documents the relationship between the issuers and MCM Securities, it failed to provide investors with a sound basis for evaluating the offerings and thus caused the offering documents to be misleading.
Also FINRA’s findings stated that during the period from July 20, 2016 through June 6, 2017, MCM Securities conducted a securities business while failing to maintain sufficient net capital, maintained inaccurate financial books and records, and failed to file accurate quarterly Financial and Operational Combined Uniform Single (FOCUS) reports. These net capital violations arose primarily from the firm’s failure to properly account for two lawsuits filed against it and other third parties.
MCM Securities did not obtain an outside counsel’s opinion letter for either of the lawsuits until June 7, 2017. Consequently, prior to June 7, 2017, the firm was required to incorporate the damages sought in the lawsuits in its minimum net capital calculations, which it failed to do, resulting in the net capital deficiencies set forth above.
Additionally, a portion of the June 6, 2017 net capital deficiency resulted from MCM Securities’ improper net capital treatment of a temporary capital contribution. During the period of July 20, 2016 through June 6, 2017, the firm failed to prepare an accurate record of the computation of its aggregate indebtedness and net capital, and submitted inaccurate FOCUS reports, due to its failure to properly account for contingent liabilities arising from the two lawsuits filed against it. During the period of April 17, 2017 through August 7, 2017, MCM Securities failed to prepare an accurate record of the computation of its net capital, and submitted inaccurate FOCUS reports, due to its improper net capital treatment of the temporary capital contribution.
(FINRA Case #2017053724401)
If you were a client of MCM Securities, and experienced losses due to their actions or recommendations, call the securities lawyers at Soreide Law Group at no cost to discuss the possible recovery of your financial losses at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis.