(FINRA Case #2014040295201)
Carolina Financial Securities, LLC (CRD® #41970, Brevard, North Carolina) and Bruce Victor Roberts (CRD #1489110, Brevard, North Carolina) – An Office of Hearing Officers (OHO) decision became final in which the firm was fined $60,000 and the firm and Roberts were each served with a Letter of Caution.
The sanctions were based on findings that the firm made material misrepresentations and omissions in connection with the sale of securities. The findings stated that the firm recommended a funding entity’s senior secured notes to investors without conducting an investigation that was sufficient to provide a reasonable basis for determining that the notes were suitable for any investor.
The findings also stated that the firm and Roberts made false and misleading communications to the public by distributing offering materials that they should have known contained untrue statements of material fact.
The findings also included that the firm and Roberts failed to enforce the firm’s Written Supervisory Procedures (WSPs) by permitting certain firm registered representatives to sell the notes even though the representatives had not passed a required quiz designed to test their understanding of the notes.
The Hearing Panel found that FINRA® did not establish that the firm and Roberts knowingly or recklessly made misrepresentations or omissions in the offering materials in violation of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and FINRA Rule 2020; Roberts negligently made material misrepresentations on the offering materials in contravention of Section 17(a) of the Securities Act of 1933 and in violation of FINRA Rule 2010; Roberts recommended unsuitable securities in violation of FINRA Rules 2111(a) and 2010; and that the firm and Roberts failed to enforce the firm’s WSPs in connection with the supervision of its due diligence on the notes. Accordingly, these charges are dismissed.
If you feel you have been misled by a Broker or Brokerage Firm and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.