Securities Lawyers Blog
The securities lawyers at Gana Weinstein LLP represent investors who have been mistreated by their brokers and suffered investment losses. Our firm is experienced in bringing claims against brokerage firms, such as Cim Securities, LLC, to hold Wall Street responsible for their misconduct. When a client contacts our firm they can expect that our attorneys will have the knowledge and ability to evaluate the potential claims and analyze their trading activity for red flags of misconduct. Our consultations are designed to help provide clients with all available options.
CIM Securities is a broker-dealer that focuses on investment banking, raising private placement capital and placing public securities for issuers, and it also earns commissions on securities brokerage, mutual funds, variable annuities, and insurance products. Formed in Colorado in 2002 and based in Centennial, Colorado, the firm is wholly owned by Choice Investment Management and has supervised a New York City branch operating as Brookline Capital Markets.
Cim Securities, LLC – By the Numbers:
- CRD #: 120852
- Regulatory Events: 4
- Broker Employees: 5
Cim Securities, LLC – In the News:
FINRA v. Cim Securities, LLC (Case #2022076365001) – Between April and September 2022, CIM sold to one investor a private placement offering for which no exemption from registration was available and, therefore, constituted an unregistered distribution of securities in contravention of Section 5 of the Securities Act of 1933, and, thereby, a violation of FINRA Rule 2010. During the same period, CIM failed to reasonably respond to red flags concerning the issuer of that same offering, in violation of FINRA Rules 3110 and 2010. From September 2021 to January 2024, the firm failed to establish and maintain WSPs reasonably designed to achieve compliance with its obligations to conduct reasonable due diligence of private placement offerings, in violation of Rule 15l-1(a)(1) under the Securities Exchange Act of 1934 (Regulation Best Interest or Reg BI) and FINRA Rules 3110 and 2010. From June to September 2022, CIM distributed sales communications for an offering that did not sufficiently disclose risks associated with the offering necessary to make the communications fair and balanced and contained misleading, promissory, and unwarranted statements, in violation of FINRA Rules 2210(d)(1)(A), 2210(d)(1)(B), and 2010. Finally, from September 2021 to June 2023, the firm failed to meet its filing requirements for five private placement offerings, in violation of FINRA Rules 5123 and 2010.
FINRA v. Cim Securities, LLC (Case #2019060957101) – Between September 1, 2018, and February 23, 2020, CIM Securities failed to establish, maintain, and enforce written procedures (WSPs) reasonably designed to achieve compliance with FINRA Rules 2111 and 4512(a)(1)(D). As a result, Respondent failed to obtain required suitability information for customers investing in three private placement offerings and failed to document principal acceptance of customer accounts opened to invest in those offerings. Therefore, Respondent violated FINRA Rules 3110(a), 3110(b), 4512(a)(1)(D), and 2010. Between September 1, 2018, and February 23, 2020, CIM Securities also failed to establish a reasonable supervisory system for email review, including WSPs. Respondent also failed to enforce its WSPs for documenting email reviews between September 1, 2018, and July 31, 2019. As a result, Respondent violated FINRA Rules 3110(a), 3110(b), and 2010.
FINRA v. Cim Securities, LLC (Case #2017056738101) – Between November 2016 and May 2018 (the “Relevant Period”), the Firm failed to establish and maintain a supervisory system or written supervisory procedures reasonably designed to achieve compliance with its disclosure obligations under the federal securities laws in connection with private placements structured as contingency offerings. Although the Firm maintained written supervisory procedures addressing the need for certain specified disclosures in the offering documents, those procedures did not specify who was responsible for reviewing the documents to ensure that the disclosures were included, or how such a review would occur. Although the Firm relied on outside counsel to assist it with the content of offering documents being provided to investors, the Firm’s supervisory system had no requirements for the Firm to take reasonable steps to oversee the work of outside counsel or ensure that necessary disclosures were actually included in the offering documents. The Firm also failed to adequately train its registered representatives to ensure that required disclosures were being made. As a result of the foregoing, the Firm violated FINRA Rules 3110 and 2010.
FINRA v. Cim Securities, LLC (Case #2017052070001) – Between July and October 2016 (the “Relevant Period”), Respondent failed to comply with its obligations to review, approve, document, and supervise approximately $2.5 million in private securities transactions by three of its registered representatives as required by FINRA Rule 3280(c) and its own written supervisory procedures. As a result, Respondent violated FINRA Rules 3280(c), 3110(b) and 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.