INVESTOR ALERT—Parkland Securities, LLC Enters Into A Regulatory Settlement With FINRA For “Various Supervisory Deficiencies”
The Wolper Law Firm is investigating potential claims against Parkland Securities, LLC, a brokerage firm with 410 registered Financial Advisors. Parkland Securities is based in Ann Arbor, Michigan.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on March 7, 2019, Parkland Securities entered into a letter of acceptance, waiver and consent (“AWC”) with FINRA, agreeing to a fine of $20,000 and a censure. The FINRA AWC states that Parkland Securities failed to properly supervise the sale of leveraged, non-traditional exchange traded funds (ETFs):
“From May 22, 2014 through December 31, 2016 (the “Relevant Period”), Parkland failed to establish, maintain, and enforce a supervisory system and written supervisory procedures reasonably designed to achieve compliance with securities laws, regulations, and FINRA Rules applicable to the sales of leveraged, inverse, and inverse-leveraged exchange-traded funds (“NonTraditional ETFs”). As a result, Parkland violated FINRA Rules 3110 and 2010 and NASD Rule 3010. These violations were aggravated by the fact that Parkland represented to FINRA that it would implement specific corrective measures to cure these deficiencies, but failed to implement the measures in the time-frame anticipated by FINRA based on Parkland’s representations.”
Leveraged ETFs are speculative investments that are only suitable for investors with an aggressive risk profile. In recent years, there has been an influx of leveraged ETFs in the marketplace. Leveraged ETFs seek to amplify daily returns by two or three times and can either be long or short, meaning they can move in tandem with the market or in the opposite direction. The more leverage that is utilized by the ETF, the more aggressive the investment.
To review a copy of the FINRA AWC, click http://www.finra.org/sites/default/files/fda_documents/2016052300601%20Parkland%20Securities%2C%20LLC%20CRD%20115368%20AWC%20va%20.pdf
Notably, this is not the first time that Parkland Securities has been the subject of a regulatory sanction. In 2014, FINRA sanctioned Parkland Securities for “various deficiencies in its supervisory systems and procedures” in relation to the sale of structured products.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at email@example.com.
- Former West Park Capital, Inc. and Laidlaw & Company LTD Broker, Bryan Mazliach, Investigated By FINRA For Alleged Violation Of FINRA Rules
- Former BMO Harris Financial Advisors, Inc. Broker, Lori Ann Sacco, Suspended Six Months By FINRA For Allegedly Altering Customer Account Documents
- Former Woodbury Financial Services, Inc. Broker, Jodie Lane, Suspended Six Months By FINRA For Allegedly Accepting Gifts And Becoming Beneficiary Of A Client
- Broker, Kimberley Schkade-Hill, Supsended by FINRA For Four Months And Fined $10,000 For Allegedly Having Clients Sign Documents In Blank
- LPL Financial LLC Broker, Matthew Clason, Is The Subject Of An SEC Enforcement Action For Allegedly Stealing Hundreds Of Thousands Of Dollars From A Client
- Former Capitol Securities Management Inc. Broker, Michael Rubel, Suspended By FINRA For 45 Days For Allegedly Engaging In Short-term Trading Of Unit Investment Trusts
- Recovering Your Investment Losses In Non-Traded Real Estate Investment Trusts And Business Development Companies
- Former Westpark Capital, Inc. Broker, Hary Datys, Suspended By FINRA For Fifteen Months For Allegedly Failing To Conduct Due Diligence Before Selling Promissory Notes
- Former Ameriprise Financial Services, LLC Advisor, Arthur Hoffman, Barred By FINRA For Allegedly Failing To Provide Documents In Relation To Investigation Into Outside Business Activities
- Crown Capital Securities Broker, Kenneth Barroga, Has Had Four Customer Complaint Disclosures