FINRA Expels Broker-Dealer Linked To $485M Ponzi

Law360, New York (March 19, 2010, 1:59 PM EDT) -- The Financial Industry Regulatory Authority has expelled broker-dealer Provident Asset Management LLC for marketing allegedly fraudulent private placements offered by its affiliate Provident Royalties LLC, which the U.S. Securities and Exchange Commission accused of running a $485 million Ponzi scheme.

The expulsion is the first action stemming from a initiative, launched last year, to look into firms operating in the private placement space, according to FINRA.

That initiative arose out a sharp uptick in investor complaints related to private placements and the SEC halting sales of...
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