H.C. Wainwright & Co., LLC – Private Placement Sales & Regulatory Disclosures
The White Law Group is investigating potential claims involving H.C. Wainwright & Co., LLC (CRD#: 375), a FINRA-registered broker-dealer based in New York, New York. The firm is well known for its participation in private placements of securities and has faced multiple regulatory actions tied to supervisory and compliance failures.
Private Placements and Investor Risks
H.C. Wainwright engages in several business lines, including underwriting, corporate equity sales, and research, but it is particularly active in private placement offerings. These investments are often marketed as exclusive opportunities, but they frequently pose significant risks for retail investors, including:
- Illiquidity: Difficult to sell or exit once purchased.
- High Commissions: Broker-dealers may earn outsized fees.
- Limited Transparency: Lack of public reporting compared to exchange-traded securities.
- Speculative Nature: Increased risk of loss, unsuitable for conservative investors such as retirees.
Recent Regulatory Actions
2023 FINRA Action – Net Capital Violations
Date Initiated: November 14, 2023
FINRA found that H.C. Wainwright failed to maintain required net capital after guaranteeing loans for its parent company. The firm made improper capital withdrawals, filed inaccurate reports, and was fined $200,000 and censured.
2022 FINRA Action – Supervision & Recordkeeping Failures
Date Initiated: September 23, 2022
Wainwright was sanctioned for failing to preserve business-related text messages and inadequately supervising employee communications. The firm was fined $1.5 million, censured, and required to certify revisions to its supervisory systems.
Recovering Losses in H.C. Wainwright Investments
If you have suffered losses investing through H.C. Wainwright, particularly in private placements, you may have recovery options. Brokerage firms have a duty to perform adequate due diligence and to ensure that investments are suitable for their clients’ objectives and risk tolerance.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors seeking to recover damages. Unlike a class action, FINRA arbitration is typically faster and more efficient, allowing investors to pursue claims directly against the brokerage firm.
Free Consultation with Securities Attorneys
If you invested with H.C. Wainwright & Co., LLC and are concerned about your 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 our website at www.whitesecuritieslaw.com.
FAQs
What is a private placement?
Private placements are securities offerings exempt from SEC registration, often sold under Regulation D. They can be high risk due to illiquidity, lack of transparency, and high fees.
How many disclosures does H.C. Wainwright have?
According to FINRA BrokerCheck, the firm reports 16 regulatory disclosures, with several significant actions occurring after 2010.
Can I recover my losses from H.C. Wainwright investments?
Possibly. Investors may be able to recover losses through a FINRA arbitration claim if their financial advisor or brokerage firm improperly recommended unsuitable investments.
