FINRA Rule 8210 Inquiry

FINRA Rule 8210 Inquiry, featured by Top Securities Attorneys at The White Law Group

Concerned about a FINRA Rule 8210 Request for Information?

If you are a financial advisor and have received a FINRA Rule 8210 request for information from the Financial Industry Regulatory Authority (FINRA), the White Law Group may be able to help you.

Under Rule 8210, FINRA may demand documents, information or testimony from broker-dealers or employees.  Rule 8210 enables FINRA staff to inspect and copy virtually all of the books and records of member firms, associated persons and any other person over whom FINRA has jurisdiction.

This includes all electronically stored data including email, text messages, IMs, etc. FINRA is then permitted to share your documents with domestic federal agencies or foreign securities regulators.

Why did you receive a FINRA Rule 8210 Information Request?

Typically, the request is sent after FINRA gets a tip, referral, complaint, examination or termination of registration (Form U-5).

Similar to a subpoena, the information request may require the production of documents or require written responses to requests for information.  Individuals may be required to appear for testimony in an “on the record interview” (OTR) at a date and location set by FINRA’s staff. FINRA may also request a written statement.

What are your next steps after receiving a FINRA Rule 8210 Information Request?

  • The first step would be to discuss the request with your member firm. It’s important to continue to follow procedures within your organization, although they most likely will have also received the request, and you may need their help providing documents and records.
  • The second step is often to contact FINRA and establish a chain of communication and ask for an extension of time if needed, since the time for responding is often short.
  • The third step is hiring an experienced attorney who is familiar with FINRA disciplinary matters. An 8210 Request is a serious matter, and you should not be using a general litigator or other attorney who does not focus their practice on FINRA work.  It will be important for you to have an attorney who understands the securities industry and deals with FINRA staff on a regular basis. Choose the wrong attorney and you may end up answering FINRA’s questions in a way that may inadvertently cause you harm.

 What should you send to FINRA?

Theoretically, FINRA’s requests must be in connection with an investigation, complaint, examination or proceeding.   However, FINRA’s staff has great latitude to decide what does or does not involve an investigation, complaint, examination or proceeding.

FINRA is supposed to limit the information request to information relating to the operation of the broker-dealer or the person’s association with the member.  However, it may decide that documents concerning outside business activities or private securities transactions are relevant to its investigation.

Since FINRA now requires that you provide any documents that you have in “possession, custody or control,” that means that if you can possibly acquire it, you must share it with FINRA. Don’t forget that FINRA may obtain some documents from third parties, so it wouldn’t be a good idea to try to hide something that you think may not put you in the best light.

Make you sure you make copies of everything that you plan to send to FINRA. You may need to provide financial records, trading records, opening account documents, emails, and other documentation and your firm can help you access any documents you may not have.

Your written response may be the most important part of the process, and that is where an experienced FINRA lawyer can come into play. This is an opportunity for you and your attorney to put yourself in the best light and present your side of the story – hopefully persuading FINRA that their investigation is unnecessary by explaining away the allegations.

Once you have submitted the information to FINRA, don’t be surprised if you don’t hear anything back for while — it may take months to receive a response. FINRA may come back asking for more information or request an on- the- record interview.

Free Consultation with a Securities Attorney

If you are concerned about a FINRA 8210 Request for information, the securities attorneys at The White Law Group may be able to help you. Please call the offices at 888-637-5510 for a free consultation with one of our experienced securities attorney.

The White Law Group is a national securities arbitration, securities employment and securities regulatory law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on the firm, please visit https://www.whitesecuritieslaw.com.

 

GPB Holdings II LP Investment Losses

GPB Holdings II LP Investment Losses, featured by Top Securities Fraud Attorneys, The White Law GroupGPB Audit Committee Reportedly Resigns after Indictment of Chief Compliance Officer

The White Law Group continues its investigation into the liability that brokerage firms may have for recommending GPB offerings such as GPB Holdings II LP to its clients. The firm has had numerous calls from investors who have lost money investing in GPB Capital.

GPB Holdings II LP is one of several private placement funds sponsored by GPB Capital Holdings, LLC, a New York-based global asset management firm.

GPB Capital Holdings has recently been accused of operating as a Ponzi scheme in numerous class action lawsuits and is currently under investigation by the FBI, Securities & Exchange Commission and the Financial Industry Regulatory Authority.

According to a letter to investors on November 22nd, the company is once again delaying the outstanding financial statement audits that investors have been waiting on for over a year and “will not be able to meet our previously communicated target completion date of year-end 2019.”

The letter states that the indictment of GPB’s former Chief Compliance Officer, “may impact the timing of completing the Partnership level audits. In light of his indictment, we have engaged a third party law firm to perform an independent investigation of the allegations related to Michael Cohn’s hiring and employment at GPB Capital.”

According to the letter, the Partnership’s auditor has “decided to suspend work on outstanding financial statement audits. In addition, the Audit Committee has elected to resign effective upon the earlier date of the completion of the Rosenberg investigation or by November 27, 2019.”

Recovery of Investment Losses

If you suffered losses investing in GPB Holdings II LP or another GPB Capital offering, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.

These claims are distinct from the class action filed directly against GPB Capital and could be pursued concurrently.

The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country.

To learn more about the firm’s representation of investors, please visit www.whitesecuritieslaw.com.

 

Cronos Group (CRON) Investment Losses

 Cronos Group Securities Investgation, Featured by Top Securities Fraud Attorneys, The White Law GroupPot Stock Losses: Cronos Group Securities Investigation

Have you suffered losses investing in Cronos Group (CRON) at the advice of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA arbitration.

According to the Wall Street Journal yesterday, Investors in cannabis companies are finding their money is “going up in smoke” this week after a round of sad earnings reports.

Cronos Group Inc. reportedly operates as a diversified and vertically integrated cannabis company. The Company offers production and distribution platforms of medical marijuana, as well as cultivates cannabis oil and serves customers in Canada.

According to Yahoo Finance, shares of Cronos Group reportedly dropped 49% in the past year, with an 18% dive in September after recent vaping related incidences have caused some regulatory bans on the products like e-cigarettes. 

Cronos, who reportedly viewed vaping products as a key growth driver, is under pressure with these regulatory bans and consumers’ fears regarding product safety.

Securities Investigation

The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended pot stocks like Cronos Group to investors.

Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Investment recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.

 Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.

If you have suffered losses investing in Cronos Group or another pot stock, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.

Brian J. Lockett Broker Investigation

Brian J. Lockett Broker Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Financial Advisor Brian J. Lockett, Independent Financial Group in Lynnwood, Washington

Are you concerned about investments with Brian J. Lockett in Lynnwood, Washington? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to the Financial Industry Regulatory Authority on November 12, the regulator reportedly suspended financial advisor Brian J. Lockett after it was determined that  he allegedly participated in a private securities transaction without providing prior written notice to his member firm.

According to the Letter of Acceptance, Waiver & Consent posted on Nov. 12, Lockett has reportedly been suspended for 45 calendar days and fined $5,000.

According to his FINRA BrokerCheck report, Lockett is currently affiliated with Independent Financial Group in Lynnwood, Washington and has been since 2013. Prior to that, he reportedly worked for Geneos Wealth Management. Lockett reportedly has 9 customer complaints filed against him. Allegations include “sale of unapproved and unsuitable investments in oil and gas and a penny stock,” among others, according to his broker report.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Lockett’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unsuitable or unapproved investments or selling private securities transactions without approving it with their employer, the brokerage firm they are working with may still be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Washington. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you are concerned about your investments with Brian J. Lockett, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.

 

 

The Parking REIT (MVP REIT II) Withdraws $100 million IPO

The Parking REIT (MVP REIT) Lawsuits, Featured by Top Securities Attorneys, The White Law GroupThe Parking REIT (MVP REIT II) Lawsuits

Are you concerned about your investment in The Parking REIT? If so, the securities attorneys at The White Law Group may be able to help you.

The Parking REIT, Inc. (formerly known as MVP REIT II, Inc.) is a publicly registered, non-listed REIT that invests primarily in parking lots and garages in the United States.  Its assets include 44 parking facilities located in 15 states.

As we told you previously on March 22, 2018, the board of non-traded REIT suspended the company’s cash distributions and stock dividends.

According to SEC filings last week, The Parking REIT, Inc. has withdrawn its registration statement that was filed on October 5, 2018.

The company originally filed a preliminary prospectus with the SEC to raise up to $100 million in an initial public offering, but said that it “believes the withdrawal to be consistent with the public interest and the protection of investors.”

The REIT reportedly planned to use proceeds from the IPO to repay approximately $9.1 million in debt, and for general corporate and working capital purposes.

Although the REIT approved an estimated net asset value per share of $25.10 on May 15, 2019, shares have been sold at a secondary price of just $14.01 per share.

The original offering price was $25.00 per share.

The Risks of Non-traded REITs

Non-traded REITs are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk REITs, like The Parking REIT, to investors.

Notwithstanding the risks of investing in REITs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.  Brokerage firms generally make between 7-10% for selling a REIT, which is far in excess of the typical commission for more traditional investment types.

To speak with a securities attorney regarding your investment in a The Parking REIT or MVP REIT II, please call The White Law Group at (888)637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit the firm’s website at https://www.whitesecuritieslaw.com.