Fraud, Unsuitable Investments and Negligent Supervision FINRA Arbitration and Litigation Lawyer, Russell L. Forkey, Esq.
Newbridge Securities Corporation (CRD #104065, Ft. Lauderdale, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $37,500 and ordered to pay $4,063.95, plus interest, in restitution to customers. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it sold (bought) corporate bonds to (from) customers and failed to sell (buy) such bonds at a price that was fair, taking into consideration all relevant circumstances, including market conditions with respect to each bond at the time of transaction, the expense involved and that the firm was entitled to a profit. The findings stated that the firmfailed to report the correct price of the transaction to the FNTRF in last sale reports of transactions in designated securities, and failed to report the correct execution time to the FNTRF in one last sale report of a designated security transaction. The findings also stated that the firmfailed to submit to the FNTRF, for the offsetting “riskless” portion of “riskless” principal transactions in designated securities, either a clearing-only report with a capacity indicator of “riskless principal” or a non-tape, non-clearing report with a capacity indicator of “riskless principal.” The findings also included that the firm failed to report to the FNTRF the correct symbol indicating the capacity in which it executed transactions in reportable securities.
FINRA found that the firmtransmitted reports to OATS that contained inaccurate, incomplete or improperly formatted data, in that the reports contained inaccurate time stamps, omitted or contained inaccurate account type codes and omitted the time in force. In addition, FINRA determined that the firm failed to submit route and execution reports. FINRA also found that the firm failed to report the correct symbol indicating whether transactions were buy, sell, sell short or cross for transactions in reportable securities. (FINRA Case #2007007600801).