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Archive for the “Private Placements” Category

Broker/Dealers Face Wrath Of FINRA Over Subprime Securities

Friday, May 28th, 2010

Broker/dealers are apparently facing new scrutiny from the Financial Industry Regulatory Authority (FINRA). According to a May 27 article by Investment News, FINRA is actively investigating broker/dealer underwriters of subprime securities. In addition, FINRA allegedly is preparing to bring more enforcement actions for selling Regulation D deals - i.e. private placements.

According to the Investment News story, FINRA allegedly wants to know whether various broker/dealers reported incorrect data when they created the subprime securities. If the data was incorrect, it could include misstatements by firms about the default rates for the underlying mortgages used to create the mortgage-backed securities.

This same issue was the subject of a fraud lawsuit filed in April by the Securities and Exchange Commission (SEC) against Goldman Sachs.

Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.

Posted in Private Placements, Reg D Offerings, SEC Investigation | No Comments »