Securities Lawyers Blog
The law offices of Gana Weinstein LLP represents investors in investment disputes with their financial advisors or brokerage firms, such as Fenix Securities, LLC. Many investors do not recognize financial advisor misconduct when it happens, but there are steps that can be taken to recover investment losses. There are many different types of broker misconduct, including breach of fiduciary duty, failure to supervise, misrepresentation, and churning. The attorneys at Gana Weinstein LLP can analyze your investments to determine if there was actionable misconduct by the broker or brokerage firm.
Fenix Securities is a broker-dealer that earns commissions on customer securities transactions along with fees for market access technology, working with foreign finders and an affiliated investment adviser that introduce customer accounts cleared through other firms. Formed in Delaware in 2007 and registered as a broker-dealer since 2012, the firm is based in New York City.
Fenix Securities, LLC – By the Numbers:
- CRD #: 159481
- Regulatory Events: 3
- Broker Employees: 11
Fenix Securities, LLC – In the News:
FINRA v. Fenix Securities, LLC (Case #2019064742001) – From December 2016 through April 2024, the firm permitted foreign individuals to conduct a securities business using the firm’s systems when they were not registered with FINRA in any capacity. As a result, the firm violated FINRA Rules 1210 and 2010 and NASD Rule 1031. From March 2018 through September 2018, the firm paid transaction-based compensation to nonregistered, foreign individuals without disclosing in trade confirmations that a finder’s fee was paid. As a result, the firm violated FINRA Rules 2040 and 2010. From December 2016 through April 2024, the firm’s supervisory system, including written supervisory procedures (WSPs), was not reasonably designed to achieve compliance with FINRA registration requirements (FINRA Rule 1210 and NASD Rule 1031) or with FINRA Rule 2040. As a result, the firm violated FINRA Rules 3110 and 2010. From July 2016 through May 2022, the firm failed to establish and implement an anti money laundering (AML) program that was reasonably designed to detect and cause the reporting of suspicious activity in violation of FINRA Rules 3310(a) and 2010. From May 2018 through May 2022, the firm’s AML program failed to include appropriate risk based procedures for conducting ongoing customer due diligence in violation of FINRA Rules 3310(f) and 2010.
FINRA v. Fenix Securities, LLC (Case #2018057732801) – From October 2016 to the present, Fenix failed to establish, document and maintain a system of risk management controls reasonably designed to manage the financial risks of its market access business activity in violation of Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rules 15c3-5(b) and (c)(1)(ii), and FINRA Rules 3110 and 2010. From October 2016 to the present, the firm failed to establish, document and maintain a system for regularly reviewing the effectiveness of its market access risk management controls and supervisory procedures in violation of Exchange Act § 15(c)(3), Exchange Act Rule 15c3-5(e), and FINRA Rule 2010.
FINRA v. Fenix Securities, LLC (Case #2015046191401) – During the period of October 2013 to January 2015 (the “Review Period”), Fenix permitted 12 persons living outside the United States (the “Unregistered Foreign Associates”) to conduct a securities business with approximately 120 off-shore investors, even though those representatives were not registered with FINRA in any capacity and should have been registered as Foreign Associates. As a result of the foregoing, Fenix violated NASD Membership and Registration Rule 1100 and FINRA Rule 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.