Securities Lawyers Blog
The Financial Industry Regulatory Authority (FINRA) recently brought a complaint against Source Capital Group, Inc. (Source Capital) broker Donald Saccomano (Saccomano) alleging misconduct in connection with suitability, false representation, and failure to supervise claims relating to Direct Participation Products, limited partnerships, and municipal debt securities. FINRA has not released detailed information concerning the pending complaint but this is only one of several recent actions FINRA has taken against Source Capital and its financial advisors in recent years.
As we recently reported, FINRA filed a complaint against former Source Capital broker Joseph Hooper (Hooper) alleging that Hooper was working for a company called the iPractice Group, Inc. (iPractice) in a capacity that included solicited and participating in the sale of iPractice stock to customers. In that complaint FINRA alleged that Hooper was compensated for his activities. FINRA alleged that Hooper participated in 53 private securities transactions involving 41 investors or investor groups and a total of $3,400,648 worth of iPractice stock. In return, FINRA alleged that Hooper received $425,081 and more than 21,000 shares of iPractice stock as compensation for his activities.
Previously, our firm wrote about supervisory and disclosure issues at Source Capital, including FINRA’s action against Source Capital and certain principals concerning the failure of the firm’s brokers to adequately disclose material facts and the transaction of sales through misstatements. The allegations in FINRA’s action concerned certain oil and gas partnership interests in Blue Ridge Securities (Blue Ridge) and Argyle Securities. (Argyle) offered by Source Capital.