Financial West Investment Group fined over private placement escrow accounts.
In June 2017, the Financial Industry Regulatory Authority (FINRA) announced that Financial West Investment Group of Westlake, California, submitted an acceptance, waiver and consent letter, or AWC, regarding its participation in private placement offerings without the use of an escrow account. The firm was censured and fined $20,000.
FINRA’s allegations against Financial West Investment Group concerned the firm’s role in collecting and placing private placement securities without the use of an escrow account, which is a violation of industry rules. The AWC stated that the firm did not designate an account to receive the funds, and instead sent checks from the investors directly to the issuer. Such actions violate not only the firm’s Written Supervisory Procedures but also the Securities Exchange Act of 1934.
Registration and disciplinary history
In order to lawfully sell investments to the public, a firm must either be registered or exempt from registration. Financial West Investment Group is a California corporation formed in 1985 and registered with FINRA, the SEC and 52 states/territories.
According to FINRA’s CRD disclosure report, Financial West Investment Group has been the subject of seven arbitrations and 21 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 unlawful 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.