{"id":849,"date":"2011-03-17T20:45:04","date_gmt":"2011-03-17T20:45:04","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2011\/03\/dallasbased_southwest_securiti"},"modified":"2022-03-09T16:04:58","modified_gmt":"2022-03-09T22:04:58","slug":"dallasbased-southwest-securiti","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/dallasbased-southwest-securiti\/","title":{"rendered":"Dallas-Based Southwest Securities Settles for $500,000 FINRA Charges It Improperly Used Paid Consultants"},"content":{"rendered":"<p>\t\t\t\t<a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/brokerage-firm-misconduct\/\">Southwest Securities Inc.<\/a>, a Dallas-based financial firm, has consented to a $500,000 fine imposed by Financial Industry Regulatory Authority. The SRO claims that the broker-dealer paid consultants to solicit municipal securities business-a violation Municipal Securities Rulemaking Board Rule G-38-and did not comply with a number of the board&#8217;s other requirements. FINRA says that the Texas broker-dealer&#8217;s alleged misconduct threatened the municipal securities market&#8217;s integrity.<\/p>\n<p>Under Rule G-38, municipal securities dealers are not allowed to pay persons not affiliated with the company for the purposes of soliciting business for it. Southwest Securities, however, allegedly worked with these consultants to obtain 24 municipal securities underwritings and roles as financial adviser to Texas municipalities. The consultants were paid over $200,000 and promised a percent of earnings from any municipal securities business solicited. The broker-dealer also allegedly issued $26,000 in one-time payments to three individuals for their involvement in obtaining this type of business for the firm.<\/p>\n<p><strong>Other violations, allegedly included:<\/strong><\/p>\n<p>\u2022 Failing to properly submit MSRB forms.<br \/>\n\u2022 Inaccurate reporting to over 300 municipal securities transactions.<br \/>\n\u2022 Inadequate supervisory systems and procedure, which should have been revised to meet an MSRB Rule G-38 amendment that doesn&#8217;t allow unaffiliated individuals to receive payment soliciting municipal securities business.<br \/>\n\u2022 Engaging in prohibited municipal securities business-a violation of MSRB Rule G-37<br \/>\nBy settling, the Southwest Securities is not denying or admitting the <a href=\"https:\/\/www.investorlawyers.com\/\">Texas securities<\/a> charges.<\/p>\n<p><strong>Related Web Resources:<\/strong><br \/>\nDallas broker pays $500,000 to settle bond query, Dallas News, March 7, 2011<br \/>\nFFINRA Fines Southwest Securities $500,000 for Paying Former Texas Municipal Issuer Officials and Others to Solicit Municipal Securities Business on its Behalf, FINRA, March 7, 2011  <a href=\"https:\/\/www.investorlawyers.com\/blog\/dallasbased-southwest-securiti\/#more-849\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Southwest Securities Inc., a Dallas-based financial firm, has consented to a $500,000 fine imposed by Financial Industry Regulatory Authority. The SRO claims that the broker-dealer paid consultants to solicit municipal securities business-a violation Municipal Securities Rulemaking Board Rule G-38-and did not comply with a number of the board&#8217;s other requirements. FINRA says that the Texas [&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":[3842,3750],"tags":[],"class_list":["post-849","post","type-post","status-publish","format-standard","hentry","category-southwest-securities","category-texas-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Southwest Securities Settles for $500,000 FINRA Charges | Securities Fraud Attorney<\/title>\n<meta name=\"description\" content=\"Southwest Securities Inc., a Dallas-based financial firm, has consented to a $500,000 fine imposed by Financial Industry Regulatory Authority.\" \/>\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\/dallasbased-southwest-securiti\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Southwest Securities Settles for $500,000 FINRA Charges | Securities Fraud Attorney\" \/>\n<meta name=\"twitter:description\" content=\"Southwest Securities Inc., a Dallas-based financial firm, has consented to a $500,000 fine imposed by Financial Industry Regulatory Authority.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; 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