FINRA Adds Additional Fine to Meyer Associates, now known as Windsor Street Capital

FINRA, the Financial Industry Regulatory Authority, has denied an appeal by Meyer Associates, now known as Windsor Street Capital, a New York broker/dealer.  Originally the fine had been $350,000, but FINRA has ordered the broker/dealer to pay an additional $150,000 after finding an “alarming lack of quality controls.” FINRA stated that this lack of control allowed a broker in its Chicago office to commit penny-stock fraud.
The National Adjudicatory Council said that in November 2016, the FINRA enforcement which fined Meyer Associates (nka Windsor Street Capital) $350,000, “appropriately captures Meyers’ myriad supervisory failures” and other factors, which also justified the additional fine.
Meyer Associates (nka Windsor Street Capital) has had 17 disciplinary actions since 2000, of these 17, 9 involved improper supervision. In its appeal, the firm cited procedural errors, including the hearing panel’s decision to prohibit it from cross-examining one of the brokers, refusal to grant a postponement, and aggregation of sanctions that it implied resulted in an improperly high fine.
Meyer Associates (nka Windsor Street Capital) did not deny the allegations of supervisory and anti-money-laundering rule violations. The case involved George Johnson, a broker focused on selling microcap securities through private offerings. His longtime associate was appointed as his supervisor and branch manager. Johnson was barred by FINRA in April 2015 for manipulating penny stocks, and they fined and suspended Johnson’s supervisor, Christopher Wynne, and another ex-Meyers broker, Joseph Mahalick.
FINRA also ordered that Meyer Associates (nka Windsor Street Capital)  retain an independent consultant, pay hearing costs of almost $13,000 and be subject to statutory disqualification.
Soreide Law Group posted the following on our blog February 23, 2016:
https://www.securitieslawyer.com/meyers-associates-finra-actions/
If you were a client of Meyer Associates, now known as Windsor Street Capital, and you experienced losses due to their lack of supervision, actions or recommendations, call Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide through FINRA.  We operate on a contingency fee basis.