FINRA censured and fined Paulson Investment Company LLC $60,000
/Furgison Law Group investigates claims against Paulson Investment Company LLC
The securities fraud lawyers at Furgison Law Group are currently investigating claims against Paulson Investment Company LLC. The arbitration specialists at Furgison Law Group are investigating claims involving allegations of breach of fiduciary duty, failure to supervise, misrepresentations, omissions of material facts, conflict of interests, violations of state and federal securities laws, along with other broker misconduct.
FINRA fined Paulson Investment Company LLC $60,000
FINRA censured and fined Paulson Investment Company LLC (CRD #5670, Portland, Oregon) $60,000. The firm consented to the sanctions and to the entry of findings that it expanded beyond its FINRA Membership Agreement without filing a continuing membership application (CMA) for a material change in business and seeking approval for the change from FINRA. The findings stated that the firm failed to establish, maintain and enforce adequate WSPs, in that it failed to enforce procedures requiring, among other things, reasonable background investigations into disciplinary histories, financial circumstances and qualifications of its new hires. As a result of failing to follow its own procedures relating to hiring, the firm allowed several newly hired registered representatives to file initial Forms U4 for registration with the firm that were not complete or were misleading, in that they failed to disclose unsatisfied judgments or tax liens that the firm should have discovered if it had implemented adequate hiring practices.
The findings also included that the firm failed to enforce its WSPs relating to its registered representatives’ disclosure of, and the firm’s evaluation and approval of, outside business activities. The firm approved outside business activities, including investment-related activities, without adequately assessing the nature of the activities or the registered representatives’ involvement in such activities. The firm also failed to maintain adequate documentation to evidence its review and approval of its registered representatives’ outside business activities. The firm approved certain investment-related outside business activities without any constraints, without evaluating whether such outside business activities involved private securities transactions, and without establishing any method of monitoring its representatives’ involvement with such activities. (FINRA Case #2014038847601 )
Investors Have the Right to Recover Their Losses
When investments are sold by brokerage firms licensed by FINRA, they are subject to the laws that FINRA enforces. The brokerage firms are responsible for ensuring that their brokers are trading fairly, ethically and in the best interest of their clients. Ideally, they would accomplish this through careful supervision. Unfortunately, too often this supervision has been inadequate to fully protect investors. If you purchased any investments through a representative of a registered brokerage firm and suffered loses through negligence or fraud, it immediately puts the brokerage firm at fault for failing to supervise their broker. FINRA law then dictates that you can hold the firm legally liable to recover your damages.
Can I recover my investment losses?
If you lost a substantial portion of your retirement savings or other assets as a result of investments purchased through Paulson Investment Company LLC, please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.