Securities Fraud Lawyer Blog
FINRA fines Fenix Securities
In December, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Fenix Securities of New York, NY submitted an acceptance, waiver and consent letter regarding its failure to register foreign associates prior to their placing orders on behalf of customers. As a result the firm was censured and fined $30,000.
FINRA’s allegations against Fenix Securities concerned the firm’s practice of permitting unregistered foreign associates to conduct firm business by opening accounts and making transactions on behalf of off shore investors. FINRA found that several of these individuals were not registered in any capacity, while some were registered in their home jurisdiction but not with FINRA.
Registration and disciplinary history
In order to lawfully sell investments to the public, a firm must either be registered or exempt from registration. Fenix Securities is a Deleware corporation formed in 2007 and registered with FINRA, the SEC and in 12 states and territories.
According to FINRA’s CRD disclosure report, Fenix Securities has been the subject of one regulatory investigation.
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.