WestPark Capital, Inc. Review: Regulatory Sanctions, FINRA Violations, and Investor Claims

WestPark Capital, Inc. Review: Regulatory Sanctions, FINRA Violations, and Investor Claims

WestPark Capital, Inc. is a Los Angeles–based brokerage firm and investment adviser regulated by the Financial Industry Regulatory Authority (FINRA). The firm has faced multiple regulatory sanctions, including censures, fines, rescission undertakings, and findings involving private placements, AML failures, supervisory breakdowns, and Regulation Best Interest violations.

This review summarizes WestPark Capital’s regulatory history, recent FINRA enforcement actions, and broker misconduct allegations that may be relevant to investors who suffered losses.

Firm Overview

• Firm Name: WestPark Capital, Inc.

• CRD#: 39914

• SEC#: 801-108275 / 8-48898

• Headquarters: Los Angeles, California

• FINRA District: Los Angeles

• Registrations: Broker-Dealer and Investment Adviser

• Disclosures: 16 total (14 regulatory events, 2 arbitrations)

WestPark has been a FINRA member since 1996 and operates as a full-service brokerage and investment banking firm with multiple branch offices nationwide.

Regulatory History and FINRA Sanctions

December 2023 AML Compliance Failures and FINRA Violations

In a December 2023 FINRA enforcement action, FINRA found that WestPark Capital, Inc. failed to develop and implement a reasonably designed anti-money laundering (AML) program between November 2018 and March 2021, despite opening accounts and facilitating transactions for customers referred by high-risk investment banking clients.

FINRA found that WestPark repeatedly ignored red flags indicating that issuer representatives were exercising control over customer accounts and failed to reasonably detect or investigate suspicious trading activity. The firm compounded these failures by assigning AML responsibilities to an inexperienced, unregistered analyst, failing to supervise communications conducted in Mandarin on unapproved messaging platforms, and allowing that individual to respond to AML inquiries from its clearing firm without adequate oversight, in violation of FINRA Rules 3310 and 2010.

2021 FINRA AWC – Private Placements, Misrepresentations, and Supervision Failures

In November 2021, FINRA sanctioned WestPark under AWC No. 2017054381603 after finding that the firm:

• Made negligent misrepresentations and omissions to investors in multiple private placement offerings

• Failed to reasonably supervise registered representatives involved in those offerings

• Failed to establish and enforce procedures required under the FINRA Taping Rule, including recording required conversations

Sanctions imposed:

• Censure

• $250,000 fine

• Rescission offers to holders of 19 promissory notes issued by WestPark’s parent company

2020 FINRA AWC – OATS Reporting and Confirmation Violations

In 2020, FINRA issued AWC No. 2015047727501, finding that WestPark:

• Submitted inaccurate reportable order events to the Order Audit Trail System (OATS)

• Provided incorrect information on customer confirmations

• Failed to establish a supervisory system and written procedures reasonably designed to ensure compliance

Sanctions imposed:

• Censure

• $30,000 fine

Improper Interference With FINRA-Ordered Rescission

FINRA also found that WestPark undermined the rescission process required under its earlier 2021 AWC by:

• Inducing noteholders to sign “irrevocable” agreements refusing rescission without FINRA’s knowledge

• Attempting to enforce those agreements

• Falsely informing FINRA that no rescission requests had been made

• Failing to timely pay a noteholder who explicitly requested rescission

FINRA concluded these actions violated FINRA Rule 2010.

Long-Standing Supervisory Failures

Between March 2016 and December 2021, FINRA found WestPark failed to establish and enforce supervisory systems reasonably designed to comply with:

• Section 5 of the Securities Act of 1933

• FINRA suitability rules

• Markups and markdowns

• Best execution obligations

• Self-supervision requirements

These findings resulted in additional violations of FINRA Rules 3110 and 2010.

Broker Misconduct Involving WestPark Capital

Alfred Vanderlaan (CRD# 1172406)

FINRA reportedly suspended Vanderlaan for three months after alleging he recommended speculative GWG L Bonds to retail customers in 2020 and 2021. FINRA alleged the recommendations were not in the customers’ best interests and violated Regulation Best Interest (Reg BI) and FINRA Rule 2010.

Kim Ray Kunz (CRD# 718618)

Kunz was suspended for seven months beginning in July 2025 after continuing to associate with his firm and communicate with clients while under a prior suspension, rendering him statutorily disqualified. The action followed an earlier 2024 suspension for recommending speculative, illiquid debt securities in violation of Regulation Best Interest, which resulted in fines and restitution.

Alan Mason (CRD# 1302190)

In 2024, Mason consented to a two-month suspension, fines, and disgorgement after FINRA found he violated Reg BI by recommending GWG L Bonds that exceeded 20% of a senior client’s liquid net worth. The Maryland Securities Commissioner later revoked Mason’s registration after he failed to respond to a state show-cause order tied to the FINRA findings.

Linda Wimsatt (CRD# 1401802)

FINRA has reportedly suspended Wimsatt after alleging she recommended speculative GWG L Bonds to multiple retail customers while affiliated with WestPark Capital. FINRA alleged the recommendations were unsuitable based on the customers’ investment profiles and violated Regulation Best Interest.

Why These Violations Matter to Investors

Repeated findings involving private placements, AML failures, supervisory breakdowns, and unsuitable recommendations raise serious concerns about investor protection. Firms are required to maintain robust compliance systems designed to prevent conflicts of interest, unsuitable sales, and financial harm to retail investors—especially seniors and conservative investors.

Investor Recovery Options

Investors who suffered losses involving WestPark Capital or brokers formerly associated with the firm may have recovery options through FINRA arbitration, including claims related to:

• Unsuitable investment recommendations

• Misrepresentations and omissions

• Failure to supervise

• Violations of Regulation Best Interest

• Sales of illiquid or speculative products such as GWG L Bonds

How The White Law Group Can Help

With offices in Seattle and Chicago, The White Law Group represents investors nationwide in FINRA arbitration claims against brokerage firms and financial advisors. The firm focuses on cases involving broker misconduct, unsuitable alternative investments, and regulatory violations.

Call 888-637-5510 for a free consultation.

Frequently Asked Questions About WestPark Capital

What regulatory sanctions has WestPark Capital faced?

WestPark Capital has been sanctioned multiple times by FINRA for violations involving private placement misrepresentations, AML program failures, supervisory deficiencies, inaccurate reporting, and interference with FINRA-mandated rescission offers. Penalties have included censures, fines, rescission undertakings, and findings of violations of FINRA Rules 2010, 3110, 3310, and Regulation Best Interest.

Can investors recover losses involving WestPark Capital?

Yes. Investors may be able to recover losses through FINRA arbitration if their investments involved unsuitable recommendations, misrepresentations, failures to supervise, or violations of Regulation Best Interest. Claims often involve illiquid or high-risk products such as private placements, promissory notes, or GWG L Bonds.

Why does broker supervision matter for investor protection?

Broker-dealers are required to maintain supervisory systems reasonably designed to ensure compliance with securities laws and FINRA rules. When firms fail to supervise brokers properly, investors may be exposed to unsuitable investments, undisclosed risks, excessive concentrations, and financial losses.