The Synergy Investment Group, LLC ("Synergy"), a securities broker-dealer headquartered in Charlotte, North Carolina with 37 branch offices has been the subject of numerous disciplinary actions brought by the Financial Industry Regulatory Authority ("FINRA") F/K/A the National Association of Securities Dealers ("NASD"). The recent complaints have focused on Synergy's inability to manage its branch offices and their offer and sale of private placement investments without management's knowledge and/or adequate due diligence.
At the beginning of this year, FINRA censored and fined Synergy and two of its representatives, including its Director of Compliance, in connection with the offer and sale of securities issued by Medical Provider Funding Corporation VI, a subsidiary of Medical Capital Holdings, Inc. (Medcap). FINRA found that Synergy failed to conduct reasonable due diligence in connection with a Medcap offering and that the brokerage firm's written supervisory procedures (WSPs) were inadequate and failed to protect public investors. Further, FINRA found that the firm's Compliance Director did not even follow the existing WSP's in approving the offering for sale to customers. The failure of Synergy to follow FINRA and long-standing NASD rules allowed the selling broker to misrepresent and conceal important facts from investors.
Recently, FINRA charged Synergy and another one of its branch office's representatives with fraud and other violations of FINRA and NASD rules relating to the prior approval of any securities to be sold by the brokerage firm's representatives. The securities involved were issued by Surety Partners, LLC, The Broyhill All-Weather Fund, LP, and Broyhill Asset Management (F/K/A Broyhill DW Capital Advisors).
FINRA requires all of its members to conduct due diligence and approve all securities beforehand. When a brokerage firm's representatives skirt around the rules and offer securities that have not been approved, those individuals engage in a violation known as "selling away". This practice is the product of a brokerage firm's failure to enact and enforce supervisory procedures.
Apparently, supervision is a major problem at the Synergy brokerage firm, and the FINRA regulators are pursuing an investigation of all Synergy's branch offices. Unfortunately, FINRA is not in the business of recovering funds for investors lost as a result of a brokerage firm's failure to supervise its representatives.
Have you suffered losses resulting from an investment in any private placement offered and sold by a Synergy sales representative? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against Synergy salespersons who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.