Today the Financial Industry Regulatory Authority (FINRA) announced that it has expelled Provident Asset Management, LLC, the affiliate broker-dealer of Provident Shale Royalties that marketed the fraudulent Ponzi scheme private placement investments.
FINRA proclaims it is actively investigating other broker-dealers involved in the sale of Provident and other private placement interests. FINRA is looking at firms’ compliance with suitability, supervision and advertising rules, as well as potential instances of fraud.
“While the private placement market is an important source of capital for many companies, the market is also one in which investors have been subject to unsuitable or abusive sales tactics,” stated Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement.
Blum Law Group is aggressively pursuing FINRA arbitration claims against broker-dealers for losses incurred based on recommendations to purchase Provident. If you were sold limited partnership interests in Provident, contact our office.