Titan Securities a securities broker dealer headquartered in Addison Texas has been censured and fined $20,000.00 by Financial Industry Regulatory Authority (FINRA) based on findings that Titan Securities failed to supervise outside business activities of its stockbrokers. Letter of Acceptance Waiver and Consent No. 2019061705101 (June 8, 2021).
According to the AWC, a Titan Securities representative asked to engage in an outside business activity in which he would be involved in structured cash flow sales through Future Income Payments. Titan Securities authorized this activity without having confirmed whether the stockbroker’s involvement would constitute private securities transactions or outside business activities. The stockbroker was approved by Titan Securities to engage in Future Income Payments transactions.
FINRA indicated that the stockbroker’s activities constituted private securities transactions. There was no inquiry or investigation by Titan Securities concerning the FIP products. Between May of 2017 and March of 2018, $1,510,839.15 in FIP structured cash flow investments had been sold by the stockbroker to at least 19 of Titan’s customers and one non-firm investor.
FIP customers were informed that the structured cash flow investment worked by way of the company buying pensions at discount rates and then selling those pensions to investors. The company closed in April 2018 when it owed $300,000,000.00 to investors. FIP has been charged with fraud.
FINRA determined that Titan Securities violated FINRA Rules 2010 and 3270.