Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as Axiom Capital Management, Inc., were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
Axiom Capital Management is an introducing broker-dealer that provides retail brokerage in stocks, bonds, options, Treasuries, municipal and corporate debt, mutual funds and new issues, along with private placement capital raising for private companies and optional advisory services. Organized in Delaware in 1990, the firm is headquartered at 350 Fifth Avenue in New York City and clears its trades through a third-party clearing firm.
Axiom Capital Management, Inc. – By the Numbers:
- CRD #: 26580
- Regulatory Events: 11
- Arbitration Events: 3
- Broker Employees: 19
Axiom Capital Management, Inc. – In the News:
FINRA v. Axiom Capital Management, Inc. (Case #2019064535601) – In 2019, Axiom served as a sub-placement agent for a private placement offering by a Canadian start-up company. Axiom conducted due diligence of the company when it was first engaged to serve as sub-placement agent and recognized a lawsuit by the federal government against the company’s founder alleging fraud to be a “red flag.” While Axiom recognized this red flag, it failed to reasonably conduct ongoing due diligence in connection with the lawsuit during the three-month offering period. Instead, Axiom relied almost exclusively on representations by the company, which minimized the gravity of the lawsuit and its potential effect on the company and its assets. Axiom thus failed to learn of material developments in the lawsuit that later resulted in the company being ordered to place a substantial portion of its assets in receivership and a contempt finding against the company’s CEO. As a result of its failure to conduct reasonable ongoing due diligence in connection with the lawsuit, Axiom recommended the offering to customers without a reasonable basis in violation of FINRA Rules 2111(a) and 2010. In addition, Axiom failed to establish and maintain a supervisory system, including written procedures, reasonably designed to ensure that the firm conducted reasonable ongoing due diligence during the entire offering period in violation of FINRA Rules 3110 and 2010. Axiom also failed to timely file the offering documents with FINRA in violation of FINRA Rules 5123 and 2010.
FINRA v. Axiom Capital Management, Inc. (Case #2017054462001) – During the period of January 2013 to December 2014 (the “Relevant Period”), Axiom violated Section 15(c)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 15c2-4 promulgated thereunder, and FINRA Rule 2010 by allowing investor funds to be escrowed in an account controlled by the issuer’s law firm. Axiom also violated NASD Rule 2210(d)(1)(A) and (B) (for conduct occurring before February 4, 2013), FINRA Rule 2210(d)(1)(A) and (B) (for conduct occurring on or after February 4, 2013), and FINRA Rule 2010 by distributing sales materials to potential investors that did not meet FINRA’s content standards for member communications with the public.
Investors who believe they were the victim of broker misconduct or financial advisor negligence at Axiom Capital Management, Inc. should act promptly, because FINRA arbitration claims are subject to time limits. Contact the securities arbitration lawyers at Gana Weinstein LLP for a free consultation.