Saturday, July 08, 2023 8:10:29 AM
Boustead Securities, LLC Sanctioned by FINRA After Investigation Regarding Supervisory System and Private Placements
Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, Boustead Securities, LLC (CRD # 141391) was recently sanctioned by FINRA’s Department of Enforcement after an investigation of its supervisory system relating to customer participation in private placement offerings.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Boustead Securities, LLC.
Registration Background for Boustead Securities, LLC
Boustead Securities, LLC has been a member firm of FINRA since 2007. It is headquartered in Irvine, CA. It is an investment banking firm that has two branch offices with approximately 50 registered representatives.
Boustead Securities, LLC Sanctioned by FINRA After Investigation Regarding Supervisory System and Private Placements (1)FINRA’s Allegations Against Boustead Securities, LLC
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 14, 2022 (No. 2019060735601), Boustead Securities, LLC consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
“From March 2018 through March 2020, Boustead’s [written supervisory procedures] required the use of new account forms to collect and record customer and investment profile information, but Boustead did not enforce this procedure with respect to certain customers in certain private placement offerings”;
“In practice, Boustead did not require the use of new account forms for customers participating in private placements. Instead, the firm collected customer information through other methods such as an issuer-specific subscription agreement, the registration process conducted through an affiliated crowd funding portal, or an accredited investor questionnaire”;
“The firm’s [written supervisory procedures] did not address the collection of customer information through a crowd funding portal and did not provide any guidance as to the content of subscription agreements or accredited investor questionnaires or require them to solicit any specific customer information”;
“In each sampled private placement transaction for this period, Boustead failed to collect at least one component of the customer and investment profile information required by Exchange Act Rule 17a-3 or FINRA Rules 4512 and 2111”;
By virtue of its actions, Boustead Securities, LLC violated FINRA Rule 3110 regarding supervision, FINRA Rule 5110 regarding corporate financing; and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Boustead Securities, LLC
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s November 14, 2022 AWC also indicates that Boustead Securities, LLC consented to the following sanction(s):
A censure; and
A fine in the amount of $35,000.00.
Recent BTCS News
- BTCS Inc. Welcomes Ashley DeSimone to Its Board of Directors • GlobeNewswire Inc. • 04/18/2024 12:30:00 PM
- BTCS Reports 2023 Results • GlobeNewswire Inc. • 03/22/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:01:17 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 12:18:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:35:59 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/26/2024 06:49:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 10:00:25 PM
- Form S-3 - Registration statement under Securities Act of 1933 • Edgar (US Regulatory) • 02/14/2024 10:04:19 PM
- BTCS Inc. Launches Builder+ to Enhance Ethereum Blockchain Infrastructure • GlobeNewswire Inc. • 02/01/2024 01:35:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/31/2024 10:00:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/24/2024 01:55:34 PM
- BTCS Issues Shareholder Letter Reflecting on 2023 and Outlook for 2024 • GlobeNewswire Inc. • 01/24/2024 01:55:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 10:09:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 10:02:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 09:59:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 09:57:14 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/12/2024 09:30:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:06:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:05:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:05:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:05:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:01:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:01:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:01:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/02/2024 09:30:39 PM
FEATURED NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM