TGP Securities, Inc., a brokerage firm headquartered in Summit, New Jersey, has been censured and fined $10,000.00 by Financial Industry Regulatory Authority (FINRA) based upon consenting to findings that the firm failed to appropriately supervise private securities transactions effected by two of the firm’s registered representatives. Letter of Acceptance, Waiver and Consent, No. 2015043159502 (Mar. 23, 2017).
According to the AWC, between November of 2014 and March of 2015, transactions were effected by a registered representative, BK, for customers of an investment advisory firm which BK also worked for, wherein the transactions were placed with an outside brokerage entity. The AWC also stated that between December of 2013 and February of 2015, another registered representative, RL, utilized his investment advisory to solicit customers’ investments in private securities transactions.
Apparently, the activities which RL and BK engaged in were disclosed to TGP Securities, as well as the compensation that BK and RL earned in connection with facilitating the transactions. However, the transactions were never placed on TGP’s records and books in contravention of the firm’s own policies and procedures. Evidently, RL’s and BK’s involvement in the transactions had not been supervised through TGP as if they were effected through the firm. FINRA found that the firm’s failure to supervise the representatives’ conduct was violative of FINRA Rules 2010 and 3110, in addition to NASD Rules 3010 and 3040.
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