Crown Capital Securities Fined for Failing to Establish and Maintain Supervisory Procedures

Crown Capital in Orange, California, submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which the firm was censured and fined $75,000 for allegedly failing to establish and maintain a supervisory system, including written supervisory procedures, for reviewing and monitoring mutual fund switches conducted by representatives in violation of NASD Rule 3010(a), NASD Rule 3010(b), and FINRA Rule 2010. Crown Capital is a dually registered broker-dealer and investment advisor and has been a member of FINRA since July 5, 1999. According to the FINRA findings, Crown Capital had no supervisory mechanism in place and relied upon the registered representative to alert the firm of a mutual fund switch, which two representatives failed to do. The findings stated that one representative effected 61 short-term mutual fund switch transactions in a customer’s accounts which resulted in unnecessary front-end sales loads of between 3.75 and 5.75% with each new purchase and losses of approximately $5,000. During the same period, the other representative effected 49 Class A and two non-Class A short-term mutual fund switch transactions for four customers which also resulted in paid front-end sales loads of between 3.75 and 5.75% with each new purchase and losses of approximately $390,000. In addition to the findings, Crown Capital voluntarily compensated the customers who sustained losses due to the unsuitable recommendations, paying a total of approximately $395,000 in restitution.

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Did Hugh “Hobby” Barndollar of Land O’Lakes, Florida Sell You Any GPB Fund?

Let Us Help You Recover Your GPB Investment Losses! Hugh “Hobby” Barndollar is currently employed by Crown Capital Securities in Land O’Lakes, Florida. He has been registered with that broker dealer since March 2013. During the period April 2014 through the present he has also been employed by Barndollar Advisory Services Inc.  During Mr. Barndollar’s securities industry career as a salesperson he has been the subject of three (3) customer complaints.  We believe two (2) of the pending complaints filed while he was employed by Crown Capital Securities relate to private offer and sale of GPB Capital Holdings sponsored limited partnership interests. We are attorneys offering to help GPB investors who made private placement investments in the following limited partnerships offered and sold by Hugh “Hobby” Barndollar during his employment with Crown Capital Securities; that is, help them to rescind their GPB investment and/or recover their GPB investment losses: GPB Automotive Portfolio, LP GPB Cold Storage LP GPB Holdings, LP GPB Holdings II, LP GPB Holdings III, LP GPB Holdings Qualified, LP GPB NYC Development, LP GPB Waste Management Fund, LP

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