TPEG Securities Review: FINRA Sanctions, Private Placement Risks, and Investor Concerns
Overview of TPEG Securities
TPEG Securities, LLC (CRD #146726 / SEC #8-67843) has been a member of the Financial Industry Regulatory Authority (FINRA) since 2008 and is headquartered in Southlake, Texas. TPEG Securities reportedly markets and sells private placement offerings, many of which are issued by affiliated entities investing in operating companies and real estate development projects. Private placements are complex, illiquid investments that are generally sold to accredited investors and require heightened supervision due to their risk profile.
Recent FINRA disciplinary actions raise concerns about sales practices, supervisory systems, and compliance controls at the firm — particularly in connection with communications with the public and private placement offerings.
FINRA Sanction: Misleading Communications With the Public (2018–2024)
According to FINRA, between September 2018 and May 2024, TPEG Securities reportedly distributed communications to the public that included projected or misleading investment performance.
FINRA found that these communications violated:
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FINRA Rule 2210(d) (standards for fair and balanced communications)
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FINRA Rule 2010 (standards of commercial honor and principles of trade)
Performance projections can be especially problematic in the context of private placements, where investments are illiquid, speculative, and subject to significant risk. FINRA rules strictly limit how broker-dealers may discuss potential returns, particularly when such statements could mislead investors or minimize risk.
Failure to Report Customer Complaints and Supervisory Deficiencies
During the same period, FINRA also determined that TPEG Securities failed to:
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Report certain customer complaints, in violation of FINRA Rule 4530
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Establish and maintain a reasonable supervisory system, in violation of FINRA Rule 3110
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Comply with FINRA Rule 2010 and Article V, Section 2(c) of FINRA’s By-Laws
FINRA found that the firm’s written supervisory procedures (WSPs) were not reasonably designed to ensure compliance with customer complaint reporting obligations.
Failure to report complaints can prevent regulators from identifying patterns of misconduct and may delay corrective action — particularly concerning when a firm is actively selling complex alternative investments.
TPEG Securities, Prior FINRA Sanction: Private Placement Offering Documents (2020)
In a separate disciplinary action, FINRA sanctioned TPEG Securities in June 2020 for violations related to private placement filings.
According to a FINRA Letter of Acceptance, Waiver and Consent (AWC):
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TPEG Securities was censured and fined $25,000
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The firm failed to timely file private placement memoranda (PPMs), term sheets, or offering documents as required under FINRA Rule 5123
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Filings were submitted anywhere from three days to more than one year late, impairing FINRA’s ability to timely review the offerings
FINRA further found that:
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The firm’s supervisory system and WSPs were not reasonably designed to ensure compliance with Rule 5123
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Despite private placements being a core part of TPEG’s business, the firm allegedly:
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Failed to designate a supervisor responsible for Rule 5123 filings
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Failed to clearly define the “first sale date” that triggers filing obligations
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Provided insufficient guidance in its WSPs regarding filing deadlines
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(See FINRA Case #2017053051001.)
Why Supervision Matters in Private Placement Sales
Private placements often involve:
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High commissions
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Illiquidity and long holding periods
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Limited disclosure and transparency
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Elevated risk of loss
FINRA has repeatedly emphasized that firms selling alternative investments must maintain robust supervisory systems, particularly when affiliated issuers are involved. Weak supervision increases the risk that investors are exposed to unsuitable investments, misleading performance claims, or undisclosed conflicts of interest.
Investor Losses and Potential FINRA Arbitration Claims
Investors who suffered losses in private placements sold through TPEG Securities may have legal options, including filing a FINRA arbitration claim, particularly if investments were:
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Unsuitable given the investor’s risk tolerance or liquidity needs
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Marketed using misleading or overly optimistic performance projections
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Sold without proper disclosure of risks, conflicts, or fees
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Inadequately supervised by the firm
Broker-dealers have a duty to supervise their representatives and ensure compliance with FINRA rules — especially when recommending complex alternative investments.
How the White Law Group Can Help
The White Law Group represents investors nationwide in FINRA arbitration claims involving private placements, real estate investments, and alternative products. Our firm regularly investigates cases involving:
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Failure to supervise
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Misleading sales practices
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Unsuitable investment recommendations
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Regulatory violations by broker-dealers
If you invested through TPEG Securities and experienced losses, you may be entitled to recover damages.
Free Consultation: 888-637-5510
Learn more: whitesecuritieslaw.com
FAQs
What is TPEG Securities known for?
TPEG Securities primarily sells private placement offerings, including investments in operating companies and real estate development projects, often through affiliated issuers.
Why did FINRA sanction TPEG Securities?
FINRA sanctioned the firm for misleading communications with the public, failing to report customer complaints, supervisory failures, and for not timely filing required private placement offering documents.
Can investors recover losses from private placements?
Yes. Investors may pursue recovery through FINRA arbitration if losses resulted from unsuitable recommendations, misleading disclosures, or supervisory failures.
