FINRA Censures and Fines Concorde Investment Services Over Improper Private Placement Sales

The Financial Industry Regulatory Authority has censured and fined Concorde Investment Services LLC, a FINRA member since August 2010.

The firm, which is headquartered in Livonia, Michigan, has approximately 60 branch offices and approximately 150 registered representatives.

FINRA says that from December 2020 to December 2021, Concorde sold three private placement offerings claiming exemption from registration under Rule 506(b) of Regulation D, without having established substantive relationships with 45 of the prospective investors prior to the firm’s participation in those offerings.

As a result, each of those sales constituted an unregistered distribution of securities in contravention of FINRA rules. During the same period, Concorde’s supervisory system, including its written supervisory procedures, was not “reasonably designed to achieve compliance” with the Securities Act and FINRA rules related to general solicitation of private placement offerings. Accordingly, the firm violated FINRA Rules.

Concorde consented to a censure, $175,000 fine and disgorgement of $58,278 in commissions received, plus interest.

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