The Financial Industry Regulatory Authority fined Moloney Securities Co. Inc. after the broker-dealer supposedly failed to inform 37 investors in offerings related to GPB Capital Holdings LLC that the issuer did not make timely required filings with the Securities and Exchange Commission, including filing audited financial statements.
FINRA fined at least six broker-dealers in December 2022 for the improper selling of GPB Private Placements. As previously reported by The DI Wire, FINRA fined one firm this past week and four additional broker-dealers earlier this month.
According to FINRA, although Moloney received notification from GPB Capital of the delays and GPB Capital’s stated intention to complete a forensic audit, Moloney Securities sold 34 limited partnership interests in Automotive Portfolio and three limited partnership interests in Holdings II after the date of the letter.
The principal value of those 37 sales, which were finalized and accepted by GPB Capital between May 4, 2018, and June 29, 2018, totaled $3.23 million. Maloney Securities received a total of $268,082 in commissions from the sales.
Allegedly, in connection with these sales, the company’s representatives did not inform the customers that Automotive Portfolio and Holdings II had not timely filed their audited financial statements with the SEC or the reasons for the delay. FINRA says the delay in filing audited financial statements was material information that should have been disclosed.
Maloney Securities consented to a censure and a partial restitution of $268,082, plus interest.
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