Securities Lawyers Blog
Brokerage firms such as Velocity Capital, LLC have a duty to supervise their financial advisors and to recommend only investments that are suitable for their customers. When a firm breaches that duty through negligent supervision, overconcentration, excessive investment risk, or misrepresentation, investors have the right to bring a claim against the brokerage firm. The broker misconduct attorneys at Gana Weinstein LLP represent investors in these claims and can evaluate whether your investment losses were caused by misconduct.
Velocity Capital is a self-clearing broker-dealer that provides securities borrowing and lending services to broker-dealers and financial institutions and engages in proprietary trading of United States equities and listed options. Formed as a Nevada company in 2014, the firm has its principal office on Water Street in New York City.
Velocity Capital, LLC – By the Numbers:
- CRD #: 171810
- Regulatory Events: 2
- Broker Employees: 24
Velocity Capital, LLC – In the News:
FINRA v. Velocity Capital, LLC (Case #2020065592401) – From at least January 2016 through November 2022, Velocity Capital failed to: (i) reasonably evaluate six disclosed outside business activities (OBAs) in violation of FINRA Rules 3270.01 and 2010; (ii) reasonably respond to red flags that representatives were engaged in undisclosed OBAs in violation of FINRA Rules 3110 and 2010; and (iii) reasonably supervise four private securities transactions (PSTs) in violation of FINRA Rules 3280 and 2010. Additionally, from at least July 2016 through the present, Velocity Capital failed to reasonably supervise or preserve its registered representatives’ business-related communications on unapproved, non-firm communications platforms, in violation of the Securities Exchange Act of 1934 § 17(a), Exchange Act Rule 17a-4, and FINRA Rules 3110, 4511, and 2010. For these violations, Velocity Capital is censured and fined $125,000, and agrees to an undertaking.
Gana Weinstein LLP represents individuals, families, and institutions in securities arbitration and litigation against brokerage firms. If you suspect churning, excessive commissions, unauthorized trading, or other misconduct in your Velocity Capital, LLC account, our consultations are free and confidential.