Articles Tagged with M Holdings Securities

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shutterstock_102242143-300x169According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Mark Solomon (Solomon), formerly associated with M Holdings Securities, Inc. (M Holdings) in Wynnewood, Pennsylvania was suspended by FINRA concerning allegations that he engaged private securities transactions in a real estate private placement.  M Holdings terminated Solomon in January 2016 during an ongoing internal review that centered around potential violations of investment related statues and the firm’s policies and procedures.

Thereafter in January 2018 FINRA found that Solomon solicited seven investors to purchase a total of $1,400,000 in interests in a private placement without providing his firm written notice of that activity or obtaining the firm’s written approval prior to doing so. FINRA found that Solomon first provided written notice of his sales activity to his firm after responding to inquiries made by FINRA during an examination of the firm.  FINRA suspended Solomon for 12 months and imposed a fine.

At this time it is unclear the extent of Solomon’s outside business activities or private securities transactions.  Solomon disclosed a number of outside business activities including that he is the control person limited partnerships, is involved with Devon Park Partnership, Horsham Business Center, and 1000 Howard Blvd Partners LP.

The FINRA allegations concern private securities transactions – a practice known in the industry as “selling away” – a serious violation of the securities laws.

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shutterstock_187532303-300x200The investment lawyers of Gana Weinstein LLP are investigating the WaveCrest Securities LLC’s (WaveCrest) termination of former broker Charles Constant (Constant) working out of the New York, New York office.  WaveCrest terminated Constant in December 2016.  According to the firm’s Financial Industry Regulatory Authority (FINRA) BrokerCheck filing the firm stated that Constant “violated both firm policies and FINRA Rules 3270 & 3280.”  These rules have to do with disclosures of outside business activities and private securities transactions.  No other disclosure concerning the extent and nature of the activity is disclosed.

However, Constant has disclosed several outside business activities including his d/b/a Constant Capital, LLC.  Constant has also disclosed entities including PKS Insurance, Truth Data Insights, SMU Associate Board, and Constant 66 Films, LLC.  Constant 66 Films is disclosed as a film production company.  It is unclear at this time if Constant’s activities involve any of these disclosed entities.

The providing of loans, selling of promissory notes, or recommending investments outside of the firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.  Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, real estate agents, or insurance agents to clients of those side practices.

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shutterstock_173509961The Financial Industry Regulatory Authority (FINRA) barred former LPL Financial LLC (LPL) broker Thomas Caniford (Caniford) after the broker failed to respond to a letter from the regulator requesting information. While BrokerCheck records kept by FINRA do not disclose the nature of the regulatory inquiry, in February 2015, Caniford was terminated by LPL for cause stating that the broker was terminated for 1) having custody and control of client funds in a bank account in violation of firm policy; and 2) failure to provide bank records requested by the firm.

In addition, Caniford has been the subject of at least two customer complaints and four financial liens all tax related. The customer complaints against Caniford allege a number of securities law violations including that the broker made investments in products not approved by LPL, also referred to as “selling away”, and direct theft and misappropriation of funds.

Caniford entered the securities industry in 1982. From March 2004, until March 2008, Caniford was associated with M Holdings Securities, Inc. Thereafter, from March 2008, until his termination in March 2015, Caniford was associated with LPL.

Under the FINRA rules, a brokerage firm owes a duty to properly monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Selling away often occurs in brokerage firm that either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.

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