Pittsburgh's Mid Atlantic Capital Censured and Fined $100,000 by FINRA

Soreide Law Group (888-760-6552) obtained the following information from FINRA’s June 2017 Disciplinary Report: 
Mid Atlantic Capital Corporation (CRD #10674, Pittsburgh, Pennsylvania) 
was censured and fined $100,000 by FINRA for allegedly failing to adequately supervise the private securities transactions of their two registered representatives.
FINRA’s findings stated that at the time of their association with Mid Atlantic Capital, the representatives informed it about their involvement with a hedge fund. The representatives participated in securities transactions through the hedge fund, and received compensation from it in connection with those transactions. The firm was not compensated in connection with these securities transactions. However, Mid Atlantic Capital was required to supervise the transactions and include them on its books and records, but failed to do so.
FINRA stated that the firm did not recognize that the representatives’ involvement with the hedge fund constituted private securities transactions, rather than an outside business activity. Mid Atlantic Capital allegedly did not supervise the hedge fund’s transactions or portfolio activity other than by receiving monthly statements from its custodian and administrator.
As a result, Mid Atlantic Capital failed to detect that, during the time they were registered through the firm, the representatives accepted new hedge fund subscriptions of approximately $1.25 million.
(FINRA Case #2013039024401)
If you experienced losses due to the actions or recommendations of Pittsburgh’s Mid Atlantic Capital, call Soreide Law Group for a no-cost consultation with an experienced securities lawyer regarding the possibility of recovering your investment losses at:  888-760-6552.
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