South Florida Arbitration & Litigation Lawyer Blog
Municipal Bond Fraud, Misrepresentation and Negligent Supervision FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
October, 2011:
Carty & Company, Inc. (CRD #7001, Memphis, Tennessee) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $25,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to deliver official statements to customers who purchased new issue municipal securities during the primary offering disclosure period by the settlement date; the firm was neither an underwriter nor part of the underwriting syndicate, but was required to deliver an official statement to each customer by the settlement date. The findings stated that the firm failed to adopt, maintain and enforce adequate WSPs pertaining to the firm’s requirement to deliver official statements to customers purchasing new issue municipal securities in secondary market transactions. (FINRA Case #2009018036501).