South Florida Arbitration & Litigation Lawyer Blog
FINRA Arbitration Attorney, Russell L. Forkey, Esq.
June, 2011:
Beta Capital Management, L.P. (CRD #38964, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $20,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it issued inaccurate and incomplete confirmations for equity transactions. The findings stated that the firm failed on numerous occasions to provide written notification disclosing to its customers its correct capacity in the transaction. The findings also stated that the firm erroneously represented that it had acted in an agency capacity in each transaction, when, in fact, it had acted in a principal capacity in each transaction. The findings also included that the firm failed on numerous occasions to disclose the difference between the price to the customer and the firm’s contemporaneous purchase or sale price, or the reported trade price, the price to the customer and the difference, if any, between the two prices. (FINRA Case #2008014401501)