The White Law Group Reviews the Regulatory Sanctions & Complaints involving M Holdings Securities Inc.
M Holdings Securities Inc. (CRD #43285) is a Portland-based broker-dealer regulated by the Financial Industry Regulatory Authority (FINRA). While the firm has been in business for decades, public records reflect regulatory sanctions and compliance failures that investors should carefully review.
If you suffered losses involving M Holdings Securities Inc., including private placements or alternative investments, you may have legal options through FINRA arbitration.
Below, we outline key regulatory actions, supervisory failures, cybersecurity issues, and broker misconduct disclosures involving M Holdings Securities Inc.
FINRA Sanction: Supervisory Failures & Private Securities Transactions
FINRA has previously sanctioned M Holdings Securities Inc. for failing to establish and enforce adequate supervisory procedures.
Failure to Supervise Consolidated Reports
From December 2013 through June 2015, M Holdings failed to establish, maintain, and enforce a supervisory system — including written supervisory procedures (WSPs) — reasonably designed to supervise representatives’ use of consolidated reports.
As a result, the firm violated:
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NASD Rule 3010
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FINRA Rule 3110 (Supervision)
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FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)
Supervisory failures involving consolidated reports can create serious risks for investors, including misleading performance data, inaccurate account values, or improper inclusion of outside investments.
Failure to Supervise Private Securities Transactions
In addition to the consolidated report violations, FINRA found that:
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On June 29, 2015, a registered representative requested approval to engage in private securities transactions involving a limited partnership private offering tied to a commercial real estate project.
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M Holdings approved the request.
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The firm then failed to supervise 20 transactions involving sales of the offering.
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The transactions totaled approximately $18,755,000.
FINRA concluded that M Holdings violated:
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NASD Rule 3040 (Private Securities Transactions / Selling Away)
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FINRA Rule 3110
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FINRA Rule 2010
Private placements and limited partnership interests are typically high-risk, illiquid investments. When firms fail to supervise these transactions properly, investors may face significant and sometimes unrecoverable losses.
SEC Cybersecurity Sanction (November 2025)
In November 2025, the U.S. Securities and Exchange Commission (SEC) sanctioned M Holdings Securities Inc. and imposed a $325,000 penalty for cybersecurity failures.
Key Findings of the SEC Action
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Time Period: July 2019 through March 2024
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Violation: Failure to implement reasonable cybersecurity safeguards
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Impact: Email account takeovers at branch offices
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Customers Affected: Approximately 8,500 individuals
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Issue: Exposure of personally identifiable information (PII)
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Policy Deficiency: The firm had no written information security policies for its 120 branch offices (“member firms”) until September 2020
The SEC censured the firm for failing to adopt and implement written policies and procedures reasonably designed to safeguard sensitive customer data.
Cybersecurity failures at broker-dealers can expose investors to identity theft, financial fraud, and privacy violations. Firms are required to implement robust safeguards to protect customer information.
Broker Misconduct Associated with M Holdings Securities Inc.
In addition to firm-level sanctions, several brokers associated with M Holdings have faced regulatory action.
Dean Harrison Grant (Georgia) (CRD #1945209)
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Barred by FINRA in 2025
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Allegations involved failure to cooperate with a FINRA investigation
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The investigation concerned alleged conversion of customer funds
A FINRA bar is the most serious industry sanction and permanently prohibits an individual from associating with any FINRA-member firm.
Thomas Anthony Rapp (New Jersey)CRD# 6367780
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Fined $20,000
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Suspended for 21 months (April 2025)
FINRA’s investigation found allegations that Rapp engaged in:
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Unauthorized outside business activities
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“Selling away” (private securities transactions not properly supervised)
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Conduct occurring between June 2021 and July 2023 while registered with M Holdings
Selling away cases often involve private investments that are not properly vetted or supervised by the brokerage firm.
What Do These M Holdings Securities Inc. Complaints & Sanctions Mean for Investors?
Regulatory findings involving supervisory failures, private placements, selling away, cybersecurity lapses, and misleading communications can significantly increase investor risk.
Private offerings and limited partnerships — particularly commercial real estate investments — are often complex, illiquid, and unsuitable for many retail investors. When these investments are improperly recommended or inadequately supervised, investors may have claims for:
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Unsuitable recommendations
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Failure to supervise
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Misrepresentation or omission of material facts
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Breach of fiduciary duty
Can You Recover Losses from M Holdings Securities Inc.?
If you suffered losses involving private placements, limited partnerships, outside business activities, or selling away transactions connected to M Holdings Securities Inc., you may be eligible to pursue recovery through FINRA arbitration.
FINRA arbitration allows investors to bring claims against brokerage firms and registered representatives outside of court.
Speak with a Securities Fraud Attorney
The White Law Group represents retail investors nationwide in cases involving broker misconduct, supervisory failures, and private placement losses.
If you have concerns regarding M Holdings Securities Inc. complaints, lawsuits, or regulatory sanctions, we encourage you to contact our firm for a free, confidential consultation.
Contact The White Law Group today to discuss your potential recovery options at 888-637-5510.
Last modified: February 11, 2026
