Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as MD Global Partners, LLC, 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.
MD Global Partners is a broker-dealer that acts as a placement agent for investment companies and private equity funds and provides third-party marketing and merger and acquisition advisory services. Formed in Delaware in 2005 as Black Capital Partners and later known as May Davis Partners, the New York-based firm began operations in 2006 and adopted its current name in 2009 under founder Owen May.
MD Global Partners, LLC – By the Numbers:
- CRD #: 140988
- Regulatory Events: 3
- Broker Employees: 10
MD Global Partners, LLC – In the News:
FINRA v. MD Global Partners, LLC (Case #2021069346201) – First, from June 30, 2020, to December 2022, MD Global failed to fully establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Securities Exchange Act Rule 15l-1 (Regulation Best Interest or Reg BI). As a result, the firm willfully violated Exchange Act Rule 15l-1(a)(1) and violated FINRA Rules 3110 and 2010. Second, between January 2019 and March 2024, the firm failed to timely file required documents with FINRA for 16 private placement offerings. As a result, the firm violated FINRA Rules 5123 and 2010. Third, for the years 2019, 2020, 2021, 2022, and 2023, the firm did not complete its annual certification of compliance and supervisory processes. As a result, the firm violated FINRA Rules 3130 and 2010.
FINRA v. MD Global Partners, LLC (Case #2014039368501) – Section 15(c) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 15c3-1 require each broker-dealer to have and maintain its minimum net capital requirement. Pursuant to SEC Rule 15c3-1(a)(2)(iii)(B) any broker or dealer that effects more than ten transactions in any one calendar year for its own investment accounts is required to maintain net capital of $100,000 or more. At the beginning of 2013, MD Global was required to maintain minimum net capital of $5,000. When MD Global executed its eleventh proprietary transaction for the 2013 calendar year on February 13, 2013, the transaction triggered the requirement that the Firm maintain at least $100,000 in net capital pursuant to SEC Rule 15c3-1(a)(2)(iii)(B). However, the Firm had less than $100,000 in net capital at the time and its net capital remained below $100,000 until June 25, 2013. MD Global conducted a securities business during this period. Based on the foregoing, MD Global violated Section 15(c) of the Exchange Act, SEC Rule 15c3-1 thereunder, and FINRA Rule 2010.
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