Written by The White Law Group• February 9, 2023• 2:18 pm• Blog

Rosenblatt Securities Fined for Private Placement Sales

FINRA Censures and Fines Rosenblatt Securities

According to a Letter of Acceptance Waiver and Consent, the Financial Industry Regulatory Authority (FINRA) has censured and fined Rosenblatt Securities, Inc., a broker-dealer headquartered in New York, NY, $35,000 in connection with private placement sales.

According to the letter, from August 2018 through September 2021, Rosenblatt allegedly failed to timely file with FINRA any offering documents for 12 private offerings as required by FINRA Rule 5123. During the same period, Rosenblatt’s supervisory system was not reasonably designed to achieve compliance with FINRA Rule 5123. Therefore, Rosenblatt reportedly violated FINRA Rules 5123, 3110, and 2010.

FINRA Rule 5123, implemented to “enhance oversight and investor protection,” requires that a member firm that sells a security in a non-public offering submit to FINRA a copy of any private placement memorandum, term sheet, or other offering document, used in connection with such sale within 15 calendar days of the date of first sale, or notify FINRA that no such offering documents were used.

FINRA Rule 3110 (Failure to Supervise) requires a firm to establish and maintain a system to supervise the activities of its associated persons that is reasonably designed to achieve compliance with the applicable securities laws and regulations and FINRA rules.

FINRA Rule 2010 requires member firms to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.

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This information is all publicly available and provided to you by the White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.