Fulcrum Securities Fined $20,000 by FINRA

Fulcrum Securities fined.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Fulcrum Securities of St. Louis, Missouri submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $20,000.

FINRA’s allegations against Fulcrum Securities included that the firm failed to properly implement and maintain a supervisory system designed to detect and act on red flags in its micro-cap (penny stock) business.  FINRA found that the firm did not act on potentially suspicious activity relating to foreign owned accounts as required under the anti-money laundering rules and procedures.  The firm also did not properly implement their written supervisory procedures as they related to the sale of unregistered securities, which allowed large sales of penny stocks.

Registration and disciplinary history

In order to lawfully sell investments to the public, a firm must either be registered or exempt from registration.  Fulcrum Securities is an Virginia corporation formed in 2004, and registered with FINRA, the SEC and in 29 states and territories:

According to FINRA’s CRD disclosure report, Fulcrum Securities has been the subject of two regulatory investigations.

The Law Office of David Liebrader practices exclusively in the field of investment loss recovery.  For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions.  During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies.  The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.

When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues.  Typical claims that we are asked to review  involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.

If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.