FINRA Censures and Fines McDonald Partners LLC in connection with Private Placement Investments
According to The Financial Industry Regulatory Authority (FINRA) on June 22, the regulator censured and fined McDonald Partners LLC $100,000 and ordered it to pay restitution of $170,000 plus interest for alleged rules violations in connection with the sales of private placement investments.
McDonald Partners LLC (CRD #135414), a broker-dealer based in Cleveland, Ohio, reportedly engages in a general securities business, including the sales of equity securities, mutual funds, variable annuities, and private placements.
According to FINRA, in May 2019, McDonald Partners allegedly approved a private-placement offering to its customers without having first conducted reasonable due diligence of the offering, its terms, and the potential risks it presented to investors. The firm reportedly failed to reasonably consider certain aspects of this offering, including the issuer’s initial financing arrangement and the terms of the offering’s contingency provision.
McDonald Partners also reportedly failed to specify a date by which the contingency in this offering had to be met and allowed the issuer to use non-bona-fide sales to meet the offering contingency.
Additionally, for more than four weeks in May and June 2019, the firm allegedly operated a securities business while failing to maintain its minimum required net capital.
Potential Lawsuits to Recover Financial Losses
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Tags: McDonald Partners LLC FINRA, McDonald Partners private placements, securities fraud attorneys losses Last modified: July 11, 2022