South Florida Arbitration & Litigation Lawyer Blog
Unregistered Brokerage Firm Employees FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
November, 2011:
CP Capital Securities, Inc. (CRD #15029, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it allowed persons to act in registered capacities without being registered and qualified in such capacities. The findings stated that one individual, who held the title of operations manager, signed off as the registered representative on check and wire funds request forms and sometimes was the only member firm employee who signed the form. The findings also stated that another unlicensed individual signed checks and contracts on the firm’s behalf and signed off as the registered representative on one check and wire funds request form; this individual was listed in the firm’s WSPs as the secondary anti-money laundering (AML) compliance officer (AMLCO), and held the titles of vice president and operations manager. The findings also included that neither individual ever held any securities licenses while associated with the firm. FINRA found that the firm conducted a securities business while below its minimum net capital requirement. FINRA also found that the firm maintained investment advisor services and managed accounts that were fee-based, and despite the fact that a significant portion of the firm’s revenues were derived from the management fees, the firm did not establish and implement any WSPs regarding managed accounts. (FINRA Case #2009015970101)