Investigating Boustead Securities and Private Placement Risks
The White Law Group is investigating potential securities claims involving Boustead Securities, LLC (CRD#: 141391) headquartered in Irvine, California. Boustead has been active in capital raises, mergers, and particularly private placement offerings—investments that often involve high commissions and limited liquidity for investors.
FINRA Sanction – Supervisory Failures in Private Placements
According to a FINRA Letter of Acceptance, Waiver, and Consent (AWC), from March 2018 through March 2020, Boustead’s supervisory system was not reasonably designed to comply with regulatory requirements for private placements. The firm:
- Failed to collect key customer and investment profile information, including income, net worth, and investment objectives, as required under Exchange Act Rule 17a-3 and FINRA Rules 4512 and 2111.
- Did not enforce its own written supervisory procedures for private placement sales.
- Failed to file or timely file required documents related to corporate offerings with FINRA on 70 occasions.
As a result, Boustead violated multiple FINRA rules and was sanctioned with a censure and $35,ooo fine.
Broker Misconduct – Robin Taliaferro
Boustead has also been affiliated with brokers who faced significant misconduct findings. Notably, Robin Taliaferro (CRD#: 442144), who was registered with Boustead in 2020–2021, was barred by FINRA on July 15, 2022 after refusing to cooperate with an investigation into potential sales practice violations at Boustead and other firms.
Taliaferro’s BrokerCheck record reflects nine customer complaints, two regulatory events, and allegations including misrepresentation and unsuitable investment recommendations. His history raises serious concerns about how Boustead and other firms supervised his activities.
Risks of Private Placements
Private placement offerings like those sold by Boustead can be especially risky for retail investors due to:
- Illiquidity – Often no secondary market exists.
- High commissions & fees – Brokers may earn outsized compensation.
- Concentration risk – Investors may be heavily exposed to a single sector or project.
- Limited transparency – Less reporting compared to publicly traded securities.
These risks can be compounded when brokerage firms fail to supervise their representatives or properly vet the investments being sold.
Recovery Options for Investors
When brokers or firms engage in misconduct or fail to supervise private placement sales, they may be held liable for investor losses through a FINRA arbitration claim. Investors may be able to pursue recovery against the firm, not just the individual broker.
If you have concerns about investments with Boustead Securities, Robin Taliaferro, or other brokers who recommended private placements, the securities attorneys at The White Law Group may be able to help.
Free Consultation
To discuss your potential recovery options, please call (888) 637-5510 for a free consultation with a securities fraud attorney at The White Law Group.
Frequently Asked Questions (FAQs)
What was Boustead Securities sanctioned for by FINRA?
Boustead Securities was sanctioned for failing to collect required customer investment profile information and for repeatedly failing to file or timely file corporate financing documents related to private placement offerings.
Why was Robin Taliaferro barred from the securities industry?
FINRA barred Robin Taliaferro in 2022 after he refused to provide requested information in an investigation into potential sales practice violations. His record also shows multiple customer complaints and regulatory actions.
Can investors recover losses from private placement investments sold by Boustead?
Possibly. If you suffered losses in a Boustead Securities private placement, you may be able to pursue a claim through FINRA arbitration. Brokerage firms can be held liable for failing to properly supervise their brokers and for selling unsuitable investments.
