Tampa, Florida Private Placement Investment Dispute Attorney

Did Frederick Joseph Rock Cause You Investment Losses? Frederick Joseph Rock of Tampa, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000 and suspended from association with any FINRA member for a capacity of five months. The sanctions were based on findings that that he participated in private securities transactions in violation of FINRA Rules 3280 and 2010. The suspension was in effect from May 3, 2021, through October 2, 2021. In July 2014, Frederick Joseph Rock joined Pruco Securities, LLC and became registered as a General Securities Representative (GS). According to FINRA’s findings, Rock allegedly solicited 17 investors to purchase private-placement investments in a start- up company developing waste-to-energy technology totaling $409,200. The FINRA findings state that in addition to recommending the stocks, Rock also helped the investors complete stock purchase agreements and collected their stock purchase agreements and investment checks to provide to the company. The findings further state that although Rock had not received compensation for the sales, he did not provide notice or seek approval from Pruco before participating in the transactions. Frederick Joseph Rock is not currently associated with any FINRA member firm and remains subject to FINRA’s jurisdiction. FINRA Rule 3280(e) generally defines a private securities transaction as any securities transaction outside the regular scope of an associated person’s employment with a member. FINRA Rule 3280(b) states that “[p]rior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” Rule 3280(c) states that when an associated person has received or may receive selling compensation, the member firm shall provide written approval or disapproval of the associated person’s participation in the proposed private securities transaction. A violation of Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade. Do You Need a Florida Private Placement Investment Attorney? Are you a Florida investor who has suffered significant losses in your stock brokerage and investment accounts?  Did your Florida stockbroker or investment advisor misrepresent or mislead you about an investment in a Private Placement or make an unsuitable recommendation that you invest in a Private Placement like GPB Capital Holdings or EquiAlt or otherwise mismanage your investment account? If so, you will need to have representation by an experienced, highly rated and nationally recognized FINRA securities arbitration law attorney—an attorney who understands these highly complex and risky Private Placement investments. You need an experienced lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases and other complex legal issues.  Free Initial Consultation With Experienced Private Placement Investment Attorneys Serving Tampa, Florida Residents In FINRA Arbitration Proceedings At The Law Offices of Robert Wayne Pearce, P.A.  we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Florida, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. Se habla español For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Florida citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

Continue Reading

Woodmere, New York Private Placement Investment Dispute Attorney

Did Dalmore Group LLC Cause You Investment Losses? Dalmore Group LLC of Woodmere, New York submitted Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which they were censured and fined $40,000. The sanctions were based on findings that the firm failed to establish and maintain a supervisory system, including written supervisory procedures, and failed to submit required offering documents to FINRA in violation of FINRA Rules 3110, 5123, and 2010. Since November 2005, Dalmore Group LLC (Dalmore) has been registered with FINRA and has approximately 40 registered representatives in their three branches. According to FINRA’s findings, from April 2017 through February 2019, Dalmore failed to conduct and document investigations regarding two private placements by relying almost exclusively on the issuers, before they allowed them to be recommended and sold. The findings state that as a result of the misconduct, the firm failed to uncover relevant information on the issuer of the private placements. In addition, FINRA findings state that Dalmore failed to file offering documents for 26 private placements within the allowed 15 calendar days and instead made its filings from 16 days to 335 days after the date of the first sale. FINRA Rule 3110(a) requires that FINRA members “establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.” FINRA Rule 3110(b) requires that each FINRA member “establish, maintain, and enforce written procedures to supervise the types of business in which it engages and the activities of its associated persons that are reasonably designed to achieve compliance with the applicable securities laws and regulations, and with applicable FINRA Rules.” A violation of FINRA Rule 3110 also constitutes a violation of FINRA Rule 2010, which requires member firms to “observe high standards of commercial honor and just and equitable principles of trade.” A broker-dealer has a duty to conduct a reasonable investigation concerning any private placement offering that it recommends and sells to its customers. FINRA Regulatory Notice 10-22 explains that the amount and nature of the investigation turns on various factors, including, but not limited to, “the nature of the recommendation, the role of the broker in the transaction, its knowledge and relationship to the issuer, and the size and stability of the issuer.” Regulatory Notice 10-22 further reminds firms that they must have supervisory procedures that are reasonably designed to ensure, among other things, that the firm’s personnel investigate each private placement the firm recommends and that they do so in a manner that is sufficiently rigorous to comply with all legal and regulatory requirements. FINRA Rule 5123 requires that a member that sells a security in a non-public offering in reliance on an available exemption from registration under the Securities Act of 1933 must: (i) submit to FINRA, or have submitted on its behalf, a copy of any private placement memorandum, term sheet or other offering document, used in connection with such sale within 15 calendar days of the date of first sale, or (ii) notify FINRA that no such offering documents were used. Rule 5123 was implemented to “enhance oversight and investor protection” and provide “more timely and complete information about the private placement activities of firms on behalf of other issuers. Do You Need a New York Attorney for a Private Placement Investment Dispute? Are you a Woodmere, New York investor who has suffered significant losses in your stock brokerage and investment accounts?  Did your New York stockbroker or investment advisor misrepresent or mislead you about an investment in a Private Placement or make an unsuitable recommendation that you invest in a Private Placement like GPB Capital Holdings or EquiAlt or otherwise mismanage your investment account? If so, you will need to have representation by an experienced, highly rated and nationally recognized FINRA securities arbitration law attorney—an attorney who understands these highly complex and risky Private Placement investments. You need an experienced lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases and other complex legal issues.  Free Initial Consultation With Experienced Private Placement Investment Attorneys Serving Woodmere, New York Residents In FINRA Arbitration Proceedings At The Law Offices of Robert Wayne Pearce, P.A.  we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. Se habla español For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

Continue Reading