FINRA Securities and Investment Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
Bathgate Capital Partners LLC nka GVC Capital LLC (CRD #38923, Greenwood Village, Colorado) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $13,500. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it acted as a placement agent in a private investment in public equity (PIPE) offering under Regulation D of the Securities Act of 1933 by a company whose securities were quoted on the Over-the-Counter Bulletin Board (OTCBBTM). The findings stated that the firm distributed to customers via email an executive summary the company prepared that failed to contain any discussion of the risks associated with investing in the company and failed to disclose that the company’s current audited financial statements said that the company’s history of losses raised substantial doubt concerning its ability to continue as a going concern, that the company had an accumulated deficit of $85,413,000, that it had never made a profit, that its business was dependent on sales of a single product or product line, and that its losses totaled more than its revenues for a couple of years. The findings also stated that the firm’s communications were not based on principles of fair dealing and good faith, were not fair and balanced, and did not provide a sound basis for evaluating the facts in regard to any particular security or type of security, industry or service. The findings also included that, in its email communications with its customers, the firm omitted material facts or qualifications that, in light of the context of the material presented, caused the communications to be misleading, predicted or projected performance, and made exaggerated or unwarranted claims, opinions or forecasts about the company. (FINRA Case #2008013353801).