Securities Lawyers Blog
Financial advisor complaints, broker complaints, and FINRA customer disputes are public on BrokerCheck, and a broker’s regulatory history is often the first thing an investor checks after an unexpected loss. The investor attorneys at Gana Weinstein LLP help customers of firms such as CoreCap Investments, LLC understand what a financial advisor’s disciplinary history means and whether their own losses support a claim against the broker or the brokerage firm.
CoreCap Investments is an independent broker-dealer that supports financial professionals with brokerage of equities, fixed income, municipal securities, mutual funds, options, variable annuities and private placements. Headquartered in Southfield, Michigan, the firm converted to a Delaware limited liability company in 2020, is a subsidiary of Core Capital Holdings within the Simplicity Group, and is registered nationwide.
CoreCap Investments, LLC – By the Numbers:
- CRD #: 37068
- Regulatory Events: 8
- Arbitration Events: 1
- Broker Employees: 115
CoreCap Investments, LLC – In the News:
FINRA v. CoreCap Investments, LLC (Case #2021069368801) – Between April 26, 2021, and November 3, 2021, CoreCap operated more offices than permitted in its membership agreement without filing a continuing membership application for a material change in business operations and without obtaining approval from FINRA, in violation of FINRA Rules 1017(a) and 2010.
FINRA v. CoreCap Investments, LLC (Case #2018056305601) – This AWC addresses violations relating to (1) the registration of associated persons in the categories appropriate to their functions and responsibilities; (2) the registration and inspection of branch offices; and (3) net capital and recordkeeping. From February 2016 to February 2019, Corecap engaged in investment banking activities without registering a representative or principal in the appropriate categories. The firm also did not register 31 locations that qualified as branch offices and did not inspect a non-supervisory branch office location at least once every three years, as required. Finally, by failing to account for separate liabilities during December 2017 — January 2018 and January 2019 — February 2019, the firm prepared inaccurate books and records, filed inaccurate FOCUS reports, and engaged in securities business without the minimum required net capital. As a result, Corecap violated Exchange Act Rules 15c3-1, 17a-3, 17a-5, and 17a-11; Article IV, Section 8 of FINRA’s By-Laws; NASD Rules 1021, 1022, and 1031; and FINRA Rules 1210, 1220, 2010, and 4511.
FINRA v. CoreCap Investments, LLC (Case #2017053505901) – On December 31, 2016, Corecap conducted a securities business while failing to maintain its required minimum net capital in violation of Securities Exchange Act (“SEA”) Rule 15c3-1 and FINRA Rule 2010. Additionally, on the same date, the firm failed to prepare an accurate net capital computation, trial balance and general ledger in violation of SEA Rule 17a-3 and FINRA Rules 4511 and 2010. Finally, the firm failed to file an accurate FOCUS Report for the period ending December 31, 2016 in violation of SEA Rule 17a-5 and FINRA Rule 2010.
FINRA v. CoreCap Investments, LLC (Case #2016048224701) – Between January 16, 2014 and May 24, 2016 (the “Relevant Period”), Corecap failed to report 26 of 87 municipal securities transactions in violation of MSRB Rule G-14. In addition, Corecap failed to establish and enforce a supervisory system that was reasonably designed to ensure its compliance with MSRB Rule G-14, in violation of MSRB Rule G-27.
A brokerage firm’s regulatory history is often important evidence in a FINRA arbitration claim. If you lost money at CoreCap Investments, LLC, the securities arbitration attorneys at Gana Weinstein LLP can review the firm’s record alongside your accounts, free of charge.