Securities Lawyers Blog
Stockbroker fraud and financial advisor negligence cost investors billions of dollars every year. The stockbroker fraud attorneys at Gana Weinstein LLP represent investors in FINRA arbitration claims involving misrepresentation, omissions, excessive commissions, and overconcentration of investment portfolios, including claims by customers of firms such as TerraNova Capital Equities, Inc. We can determine whether your investment losses were caused by misconduct and what damages may be recovered.
TerraNova Capital Equities is a boutique investment banking broker-dealer that acts as a private placement agent and consults on mergers and acquisitions, earning investment banking and advisory fees. Incorporated in Delaware in 1998, the firm is a wholly owned subsidiary of TerraNova Capital Partners and is headquartered on Lexington Avenue in New York City.
TerraNova Capital Equities, Inc – By the Numbers:
- CRD #: 45097
- Regulatory Events: 4
- Broker Employees: 25
TerraNova Capital Equities, Inc – In the News:
FINRA v. TerraNova Capital Equities, Inc (Case #2020066852401) – Between August 2018 and September 2020, TerraNova acted as placement agent for three private offerings and sold securities from those offerings, which the issuers failed to qualify for an exemption from registration. As a result, the firm engaged in unregistered distributions of securities in contravention of Section 5 of the Securities Act of 1933 and thereby violated FINRA Rule 2010. From at least August 2018 through the present, the firm failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Section 5 of the Securities Act. TerraNova therefore violated FINRA Rules 3110 and 2010.
FINRA v. TerraNova Capital Equities, Inc (Case #2015047958301) – In 2015, while the Firm acted as a placement agent for a best-efforts minimum/maximum contingency offering of issuer “NWH” (the “Offering”), it failed to return investor funds when the issuer lowered the minimum amount for the Offering. The Offering was initially structured with a minimum contingency of $2 million and a maximum contingency of $4 million. The Firm sold the first units to investors on January 2, 2015. The Firm sold additional units thereafter, to a total of 14 investors, including $150,000 of non bona-fide sales to two investors who were associated with both the Firm and the issuer. On June 29, 2015, the issuer made a material change to the terms of the Offering when it reduced the minimum contingency amount from $2 million to $1.5 million. But, the Firm did not terminate the Offering or return funds to the existing investors as required. Instead, the Firm issued letters to the existing investors and requested that they affirm to continue their investment, which each investor did. On July 13, 2015, the Offering met the reduced minimum contingency amount, of $1.5 million. The Firm then released the investor funds from escrow and delivered them to the issuer. As a result of the foregoing conduct, the Firm willfully violated Section 10(b) of the Securities and Exchange Act of 1934, SEC Rule 10b-9, and FINRA Rule 2010. In addition, although the first units of the Offering were sold on January 2, 2015, the Firm did not timely file any Offering documents with FINRA within 15 days of that sale. Instead, the Firm filed the Offering documents more than six months later, on July 28, 2015. As a result of the foregoing conduct, the Firm violated FINRA Rules 5123 and 2010.
Our investment fraud lawyers have recovered losses for hundreds of investors through FINRA arbitration awards and settlements. If you have concerns about a broker at TerraNova Capital Equities, Inc, contact Gana Weinstein LLP for a free consultation.