KCD Financial, Inc. Fine Upheld Over Sales of WRF Distressed Residential Fund 2011
We are currently investigating allegations made against KCD Financial, Inc., a Green Bay (previously De Pere), Wisconsion-based securities brokerage firm. FINRA (the Financial Industry Regulatory Authority) brought a regulatory action against KCD Financial, alleging that it failed to reasonably supervise the sales of unregistered securities, in violation of SEC rules and regulations.
In particular, FINRA alleged that the firm’s Dallas, Texas office sold a number of investments in WRF Distressed Residential Fund 2011. WRF stands for Westmount Realty Finance, an assumed name of the Dallas, Texas branch office of KCD Financial. KCD representatives in Dallas sold over $2 million in investments for WRF Distressed Residential Fund 2011, despite it being unregistered.
In August 2016, FINRA ordered KCD Financial to pay a fine of $73,000 regarding these allegations.
After FINRA’s order, KCD Financial sought a review of the punishment and appealed this decision to the SEC (the Securities and Exchange Commission). The SEC reviewed the FINRA Order and came to the same conclusions that KCD Financial failed to adequately supervise these sales. The SEC also upheld the $73,000 fine.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Dallas and Texas. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: KCD Financial BrokerCheck 8.4.16 (1)
Click to view: KCD Financial SEC Review
Click to view: KCD Financial FINRA Order (1)
If you have lost money with KCD Financial or in WRF Distressed Residential Fund 2011 and want to hear about ALL legal options, please visit https://www.israelsneuman.com or call us at (720) 599-3505.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs