Canaccord Genuity Wealth Management (USA) – Regulatory History & Private Placement Investigation
The White Law Group is investigating the regulatory history of Canaccord Genuity Wealth Management (CRD#: 7449/SEC#: 801-106809,8-21025), a FINRA-registered broker-dealer with a track record of supervisory failures and sales of risky private placement investments. The firm has faced multiple regulatory sanctions in recent years, raising concerns for investors who may have suffered losses.
2023 FINRA Sanction – Supervisory Failures in Private Placements
On September 8, 2023, FINRA fined Canaccord Genuity Wealth Management (USA) $200,000 and issued a censure for supervisory failures in connection with 12 private placement sales between 2017 and 2020.
According to FINRA, the firm failed to reasonably supervise its representatives in the sale of these high-risk investments. Without proper oversight, investors were exposed to significant risks, reinforcing concerns about Canaccord’s ability to protect clients in complex alternative products.
Private Placements – Risks for Investors
Canaccord Genuity has been known for selling private placements, often structured as Regulation D offerings. While these products may appear attractive for their potential returns, they also carry substantial risks, including:
- Illiquidity – No secondary market, making it extremely difficult to sell or redeem shares.
- High Commissions – Brokers can earn commissions of 7–10%, creating conflicts of interest.
- Lack of Transparency – Investors receive less information than with public securities.
- Speculative Investments – Many involve start-ups, real estate ventures, or niche projects prone to failure.
Because of these risks, private placements are frequently unsuitable for retail investors, particularly retirees or those seeking income and liquidity.
Regulatory & Arbitration History of Canaccord Genuity
Beyond the 2023 sanction, Canaccord Genuity and its affiliates have faced repeated actions from regulators, including the SEC and FINRA:
- September 24, 2024 – SEC Recordkeeping Sanction
The SEC sanctioned Canaccord Genuity LLC for failing to preserve off-channel business communications and supervise its personnel. The firm consented to a cease-and-desist order, censure, undertakings, and a $1.25 million fine. - September 8, 2023 – FINRA Supervisory Sanction
FINRA fined Canaccord Genuity Wealth Management (USA) $200,000 and issued a censure for supervisory failures in 12 private placement sales between 2017–2020. - October 8, 2020 – FINRA Supervisory Sanction
FINRA censured Canaccord Genuity LLC and imposed a $27,500 fine for supervisory failures tied to options transactions. - July 23, 2020 – FINRA OATS Reporting Failures
FINRA sanctioned the firm $150,000 for failing to submit accurate order data to the Order Audit Trail System (OATS). - October 21, 2019 – FINRA Trading & Reporting Sanction
FINRA fined the firm $60,000 and issued a censure for failing to deliver positions, mismarking orders, and violating SEC Rule 203(b)(1).
These repeated sanctions reflect longstanding compliance and supervisory deficiencies across multiple areas of Canaccord Genuity’s operations.
Broker Misconduct – Cynthia La Rosa (CRD#: 2459459)
According to FINRA BrokerCheck, former Canaccord Genuity broker Cynthia La Rosa was barred by FINRA in 2022.
- CRD Number: 2459459
- Firm Affiliation: Canaccord Genuity LLC
- Misconduct: Allegedly created false documents to mislead regulators during an investigation.
- Status: Barred from association with any FINRA member firm in any capacity.
Recovery Options for Investors
Brokerage firms are required to supervise financial advisors and ensure investment recommendations are suitable for each client’s objectives and risk profile. If a firm fails in these obligations, it may be liable for resulting investment losses.
Investors who experienced losses in private placements or other securities sold through Canaccord Genuity may be able to pursue claims through FINRA arbitration, which is typically faster and more cost-effective than pursuing a class action.
Free Consultation with Securities Attorneys
If you invested with Canaccord Genuity Wealth Management (USA) and suffered financial losses, the securities attorneys at The White Law Group may be able to help.
Call our offices at (888) 637-5510 for a free consultation.
For more information, please visit www.whitesecuritieslaw.com.
Last modified: September 2, 2025
