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FINRA Sanctions Crown Capital Securities LP for Violations 

FINRA Sanctions Crown Capital Securities LP for Compensation Violations, featured by top securities fraud attorneys, the White Law Group

FINRA Censures and Fines Crown Capital $75,000 for Compensation Violations 

According to the Financial Industry Regulatory Authority (FINRA) on March 11, the regulator has fined Crown Capital Securities $75,000 after allegations that the firm paid transaction-based compensation to unregistered entities. 

The firm was also censured and required to certify that all of its commission and payment arrangements comply with FINRA rules. 

From January 2017 to January 2021, Crown Capital Securities, a broker-dealer headquartered in Orange, CA, reportedly paid approximately $19.3 million in commissions earned by 18 of its registered representatives to 18 unregistered entities. 

The unregistered entities were reportedly corporations and limited liability companies created by the representatives to serve as “doing business as” names for their securities businesses and were disclosed and approved outside business activities. 

FINRA found that Crown Capital made payments to the unregistered entities instead of paying commissions directly to the registered representatives. The firm reportedly agreed to FINRA’s sanctions without admitting or denying the allegations.

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If you are concerned about your investments with your broker or financial advisor, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free, no risk consultation. 

FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 

To learn more about Crown Capital Securities, please see:

Crown Capital Securities- Broker Misconduct, Customer Complaints and Regulatory Actions

Crown Capital Securities LP to Pay $1.6 Million for Mutual…

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