FINRA Sanctions 8 Firms Over Bad Private Placements

Law360, New York (November 29, 2011, 3:13 PM EST) -- The Financial Industry Regulatory Authority on Tuesday announced sanctions against eight firms and 10 people, including restitution of more than $3.2 million, for selling private placement offering interests in troubled securities with no basis for recommending them.

The sanctioned parties sold interests in high-risk private placements by Provident Royalties LLC, Medical Capital Holdings Inc. and DBSI Inc., according to FINRA. The eventual failure of those companies caused investors significant losses.

“FINRA continues to look closely at sales of private placements to determine whether the selling firms...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.