Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP represent investors in their disputes with brokerage firms, such as Capital City Securities, LLC. Our firm can analyze your accounts and investments in order to determine if there was any broker misconduct in the handling of your accounts. Our analysis can reveal whether an investor has been a victim of misconduct such as unsuitable investments, unauthorized trading, excessive trading, or investment fraud.
Capital City Securities is a broker-dealer firm registered in the United States securities industry. The firm was formed in Ohio in 2005.
Capital City Securities, LLC – By the Numbers:
- CRD #: 146001
- Regulatory Events: 3
- Arbitration Events: 1
- Broker Employees: 17
Capital City Securities, LLC – In the News:
FINRA v. Capital City Securities, LLC (Case #2015048347902) – Between August 2015 and June 2016 (the “Relevant Trading Period”), Capital City failed to establish and maintain a supervisory system, and failed to establish, maintain and enforce written supervisory procedures, that were reasonably designed to achieve compliance with FINRA’s suitability rules. Specifically, the firm used a third-party automated trade surveillance application to supervise and review registered representative trading recommendations and strategies yet did not re-configure, modify, or alter that surveillance tool to monitor unique trading strategies like that of registered representative CK. Second, with respect to CK, the firm bifurcated responsibility for supervising his equity and options recommendations by product, even where those recommendations impacted the same customer account as part of a singular, active trading strategy. As a result, individual supervisors were unable to identify patterns and evaluate the trading strategy employed by CK, who effected quantitatively unsuitable transactions in five customer accounts over which he had discretionary trading authority. CK’s trading in these customer accounts generated cost-to-equity ratios and turnover rates ranging from 19.7% to 31.7% and 8.2 to 12.7, respectively. Through this conduct, Capital City violated FINRA Rules 3110 and 2010. In addition, between July 30, 2015 and August 10, 2015, Capital City failed to conduct a reasonable due diligence review of a private placement by registered representative JM, in violation of FINRA Rules 3110 and 2010. Finally, between July 22, 2015 and August 24, 2016, Capital City failed to preserve and maintain certain books and records required by Section 17(a) of the Securities Exchange Act of 1934 (“the Exchange Act”) and Rule 17a-4 promulgated thereunder (“SEA Rule 17a-4”). Specifically, Capital City failed to preserve and maintain over 200 of JM’s business-related electronic communications conducted through his personal email address. As a result, the firm violated Section 17(a) of the Exchange Act, Rule 17a-4 thereunder, and FINRA Rules 4511 and 2010.
FINRA v. Capital City Securities, LLC (Case #2014039216101) – From July 2011 to November 2014 (the “Relevant Period”), Capital City failed to establish, maintain, and enforce a reasonable supervisory system designed to ensure the review of its representatives’ sales of leveraged and inverse exchange traded funds (“Non-Traditional ETFs”), in violation of NASD Rule 3010 and FINRA Rule 2010.
Gana Weinstein LLP has successfully handled hundreds of customer investment disputes with their brokerage firms. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.