{"id":5510,"date":"2013-09-14T00:00:00","date_gmt":"2013-09-14T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/09\/broker_gets_1year_suspension_f"},"modified":"2022-03-10T16:38:06","modified_gmt":"2022-03-10T22:38:06","slug":"broker-gets-1year-suspension-f","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/broker-gets-1year-suspension-f\/","title":{"rendered":"Broker Gets 1-Year Suspension From FINRA Over Inadequate Due Diligence and Supervision"},"content":{"rendered":"\n<p>Gary Mitchell Spitz, a broker and a registered principal of an Iowa-based brokerage firm, is suspended from associating with any FINRA member for a year and must pay a $5,000 fine. The SRO says that Spitz did not perform proper due diligence of an entity\u2014a Reg D, Rule 506 private offering of up to $2 million\u2014even though this action is mandated by his firm\u2019s written supervisory procedures. <\/p>\n<p>FINRA\u2019s finding state that because of Spitz\u2019s inadequate review, he did not make sure that the offering memorandum had audited financials of the issuer or make sure that these financials were accessible to non-accredited investors prior to a sale\u2014also, a Regulation D requirement. The SRO says that Spitz let certain registered representatives, who were  associated with the firm, to sell the entity\u2019s shares and turn in offering documents that customers had executed directly to that entity. This meant that Spitz did not get copies of the documents or perform a suitable review of the transactions before they were executed. Certain customers even invested in the entity prior to Spitz getting the subscription documents from these representatives. <\/p>\n<p>Spitz also is accused of not acting to make sure that the representatives made reasonable attempts to get information about the financial status, risk tolerance, and investment goals of customers. FINRA says he did not retain and review these representatives\u2019 email correspondence and that they worked for a company that was the entity\u2019s manager. Spitz let these representatives use the company\u2019s email address to dialogue with customers and prospective clients but that the firm\u2019s server did not capture the correspondence. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/broker-gets-1year-suspension-f\/\"  title=\"Continue Reading Broker Gets 1-Year Suspension From FINRA Over Inadequate Due Diligence and Supervision\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gary Mitchell Spitz, a broker and a registered principal of an Iowa-based brokerage firm, is suspended from associating with any FINRA member for a year and must pay a $5,000 fine. The SRO says that Spitz did not perform proper due diligence of an entity\u2014a Reg D, Rule 506 private offering of up to $2 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3783,3967,3739,3741],"tags":[],"class_list":["post-5510","post","type-post","status-publish","format-standard","hentry","category-broker-misconduct","category-failure-to-supervise","category-finra","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Broker Gets 1-Year Suspension From FINRA Over Inadequate Due Diligence and Supervision &#8212; Investor Lawyers Blog &#8212; September 14, 2013<\/title>\n<meta name=\"description\" content=\"Gary Mitchell Spitz, a broker and a registered principal of an Iowa-based brokerage firm, is suspended from associating with any FINRA member for a year &#8212; September 14, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/broker-gets-1year-suspension-f\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Broker Gets 1-Year Suspension From FINRA Over Inadequate Due Diligence and Supervision &#8212; Investor Lawyers Blog &#8212; September 14, 2013\" \/>\n<meta name=\"twitter:description\" content=\"Gary Mitchell Spitz, a broker and a registered principal of an Iowa-based brokerage firm, is suspended from associating with any FINRA member for a year &#8212; September 14, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Broker Gets 1-Year Suspension From FINRA Over Inadequate Due Diligence and Supervision &#8212; 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