FINRA Accuses Broker-Dealers of Negligence and Unsuitability
The Financial Industry Regulatory Authority (FINRA) recently fined three brokerage firms for negligently selling GPB Capital Holdings private placements to retail customers. The broker-dealers are Dempsey Lord Smith, BD4RIA, and Geneos Wealth Management.
They have agreed to pay a $70K fine plus more than $30K restitution (with interest), a $45K fine along with $40K restitution, and $400K, respectively. The self-regulatory organizations’ (SRO’s) case against Geneos is also over its sales of the LJM Preservation & Growth Fund to customers.