WARNING! Investigation of BrokerBank Securities and CIPHERLOC CORP.
BrokerBank Securities Fined For Sales Related to Cipherloc Corporation
Have you lost money with BrokerBank Securities, a brokerage firm based out of Eden Prairie, Minnesota? We are continuing our investigation into allegations made by FINRA, the Financial Industry Regulatory Authority, against BrokerBank Securities. FINRA fined BrokerBank $5,000, alleging that it failed to perform adequate due diligence on Cipherloc Corporation. The fine was lowered considering the firm’s revenues, financial resources, and ability to pay a fine.
BrokerBank acted as the placement agent for the sales of $2.2 million in securities issued by Cipherloc. FINRA alleged that BrokerBank failed to conduct reasonable due diligence on Cipherloc and failed to document its due diligence.
In 2016, FINRA brought another investigation, alleging that BrokerBank Securities issued hundreds of misleading press releases, which were primarily research reports on specific companies. FINRA alleged that some of the reports falsely implied that BrokerBank was the author while in fact it was not. BrokerBank was paid $50 to $100 per press release. FINRA also alleged that BrokerBank failed to establish adequate supervisory procedures to monitor this conduct.
To settle these prior claims, Philip Wright (the CEO of BrokerBank) agreed to pay a $10,000 fine and was suspended for one month in a principal capacity. Additionally, Wright and BrokerBank were jointly and severally fined an additional $15,000.
Philip Wright was a financial advisor and registered representative of BrokerBank Securities, Inc. from May 2004 to the present. He worked at branch offices in Eden Prairie and Minnetonka, Minnesota.
Brokerage firms like BrokerBank Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and Seattle, Washington. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Minnesota. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: BrokerBank FINRA AWC
Click to view: BrokerBank Securities FINRA AWC Sept 2018
If you lost money with BrokerBank Securities or Cipherloc Corporation, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.