South Florida Arbitration & Litigation Lawyer Blog
Broker/Dealer and Investment Advisors Fraud, Misrepresentation and Mismanagement FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
April, 2012:
In the Matter of MidSouth Capital, Inc. and Mark D. Hill
Recently, the Commission an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Section 203(f) of the Investment Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940, Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order against MidSouth Capital, Inc. (MidSouth) and Mark D. Hill (Hill). The Order finds that, between 2008 and October 2011, MidSouth Capital failed, on multiple occasions, to maintain its necessary minimum net capital amounts. The Order further finds that, despite these failures, MidSouth continued to effect transactions in securities as a broker-dealer in violation of the federal securities laws and further failed to provide timely notification of its net capital deficiencies. The Order further finds that Hill, MidSouth’s former CEO and Financial Operations Principal, willfully aided and abetted and caused MidSouth’s net capital violations.
Based on the above, the Order censures MidSouth and directs MidSouth and Hill to cease-and-desist from committing or causing violations of the net capital rules. The Order further imposes upon Hill a six (6) month suspension from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; a six (6) month prohibition from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and a civil money penalty of $15,000. MidSouth and Hill consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted. (Rel. 34-66828; IA-3398; IC-30038; File No. 3-14852)