The Financial Industry Regulatory Authority (FINRA) recently received a withdrawal request from Boogie Investment Group, a small brokerage house that sold failed Provident Royalties private placements to its investors. Of the 52 brokerage houses that sold Provident private placements, Boogie Investment is the eleventh to call it quits this year.
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Private placements amounting to roughly $410K were sold by Boogie, whose revenues dropped from 1.2M three years ago to $422K this last fiscal year. But reduced earnings aren’t the only reason Boogie is exiting the brokerage business. The company has been hard hit by securities litigation. The firm is not only fighting a class action suit comprised of investors to whom they sold Provident private placements, but it’s also contending with a suit filed by those who bought Provident Shale Royalties products. Moreover, Boogie is combating other lawsuits that are unrelated to its sale of Provident Royalties private placements.
FINRA has forcefully dealt with brokerage firms as well individual brokers who sold private placements, alleging that they failed in their due diligence, both in investigating the placements and in assessing their suitability for their clients.
Other defunct brokers who sold Provident Royalties private placements include Workman Securities, Investlinc Securities/Meadowbrook, WFP Securities, Okoboji Financial, Matheson Securities, United Equity, CapWest, Private Asset Group Inc., Community Banker Securities LLC, E-Planning Securities Inc., Empire Financial, GunnAllen Financial and Barron Moore.
Have you incurred investment loss due to broker misconduct? Contact a stockbroker fraud lawyer in San Diego. It may be possible for you to recoup some or all of your losses. For a free consultation, contact Daniel Carlson, Esq. at Carlson Law 619-544-9300.
Tags: Boogie Investment Group, broker misconduct, brokerage house, CapWest, Community Banker Securities LLC, E-Planning Securities Inc., Empire Financial, FINRA, GunnAllen Financial and Barron Moore, Investlinc Securities/Meadowbrook, investment loss, investors, Matheson Securities, Medical Capital, Okoboji Financial, Private Asset Group Inc., private placements, Provident, Provident Royalties, Securities Fraud Attorney San Diego, Securities Lawyer, Securities Litigation, stockbroker fraud lawyer, United Equity, WFP Securities, Workman Securities
Posted in Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law | Comments (0)
After filing its first quarter financials, the parent company of Securities America, Ameriprise, announced plans to sell the embattled firm. Securities America, which is in the process of negotiating settlement of a class action suit filed against it for investment fraud, allegedly sold clients hundreds of millions of fraudulent Medical Capital and Provident Royalties securities.
An April 25, 2011, article in Investment News (“Ameriprise Shopping Securities America”) describes Securities America as financially strong. A follow-up article on the 26th, however, puts that somewhat into question as it announced a whopping $115 million first quarter loss. Nevertheless, Ameriprise asserts that Securities America can operate without disruption thanks to its parent company’s sound financial backing.
Can Ameriprise find a buyer for Securities America? According to Ameriprise management, it’s in the process of “identifying” one now. The sale, it claims, would let the company “focus on growth opportunities” while Ameriprise focuses on “Ameriprise branded-advisor business.” The company also claims that the sale would not affect settlement of the current securities lawsuit.
Tags: Ameriprise, Class action, Investment Fraud, Medical Capital, Provident Royalties, Securities America, securities lawsuit
Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation, Stock Loss | Comments (0)