MSC-BD Fined For Failure to Supervise

Our law firm is currently investigating allegations made against MSC-BD, a Lake Oswego, Oregon-based securities brokerage firm.  FINRA (the Financial Industry Regulatory Authority) brought a regulatory action against MSC, alleging that it failed to adequately supervise a registered representative.

Specifically, FINRA alleged that the representative engaged in a line of business in which he would consult with microcap issuers and would introduce investors to these microcap issuers, in exchange for a finder’s fee.  The investments in the microcap companies often took form of an equity line of credit or a convertible note and were often unregistered securities.

It was alleged that MSC allowed the representative to engage in this business without any reasonable oversight into his activities.  It was also alleged that MSC also failed to investigate whether adequate due diligence was done on these investments.  To settle these claims, MSC-BD agreed to pay a $15,000 fine.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area.  However, we represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.

Click to view:  MSC FINRA AWC

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