The Financial Industry Regulatory Authority (FINRA) sanctioned Rainmaker Securities, LLC (Rainmaker Securities) and its President Glen Anderson (Anderson) (Case No. 2013035059001) alleging that From June 2011 through September 2014, Rainmaker Securities, acting through Anderson, failed to devote adequate time, attention, and resources toward supervision. FINRA found that the firm’s lack of a culture of compliance, Rainmaker and Anderson repeatedly violated FINRA rules that required to: (i) establish and maintain a supervisory system reasonably designed to achieve compliance with securities laws and regulations; and (ii) establish, maintain and enforce written supervisory procedures to supervise its brokers.
Anderson began in the securities industry in 2005. In January 2010, Anderson joined Rainmaker Securities to become its President. Rainmaker became a FINRA registered firm on March 18, 2005, and is approved to conduct business in the origination and sale of private placements. Rainmaker Securities has six branches and 34 registered persons.
FINRA’s investigation related to many aspects of the sale of private placements including solicitation, due diligence, false advertising, suitability documents, and more. The various allegations largely regard Rainmaker Securities’ marketing and sales of the following private placement securities offerings: (a) Buttonwood Social Network Fund LLC (Facebook Fund); (b) Eudora Global LLC (Eudora Global); (c) The Incubation Factory Technology Fund, LLC (TIF Fund); and (d) The Idea Fund LLC (IDEA Fund).