FINRA Bars Crowdfunding Portal In 1st JOBS Act Settlement
Law360, New York (December 9, 2016, 3:32 PM EST) -- The Financial Industry Regulatory Authority has expelled a Virginia-based crowdfunding portal over allegations that it failed to screen for potential fraud by companies using its services, marking the agency's first settlement connected to a 2012 law that regulates online crowdfunding.
UFP LLC allegedly allowed 16 companies to sell securities through its portal despite their failure to file required paperwork with the U.S. Securities and Exchange Commission, in addition to multiple red flags suggesting fraud, according to FINRA. An agency representative on Friday confirmed this is the first FINRA settlement over alleged violations of the Jumpstart Our Business Startups Act, a law...
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