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CIM Securities Fined $15,000 For Supervisory Failures


We are investigating allegations made by FINRA (the Financial Industry Regulatory Authority) against CIM Securities, a Centennial, Colorado-based securities brokerage firm.  In a recent regulatory action, FINRA fined CIM $15,000 for failing to supervise the private securities transactions of three of CIM’s representatives.


In the action, FINRA alleged that in May 2016, three of CIM’s representatives requested to sell private placements outside of the firm, which CIM approved.  In particular, the representatives formed an LLC to sell membership interests to pool funds to invest in a separate offering for which CIM acted as the placement agent.  The three representatives sold $2.5 million in interests, but it was alleged that CIM failed to adequately supervise these transactions, in violation of FINRA rules and its own compliance manuals.


CIM has been the placement agent for numerous offerings, including International Properties Opportunity, LLC; Atea Pharmaceuticals, Inc.; MRI Interventions, Inc.; CareDX, Inc., and others.


Brokerage firms like CIM 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 Colorado. Our attorneys have represented over one thousand investors against many brokerage firms in the past.


Click to view:  CIM Securities FINRA AWC

Click to view:  CIM Securities Brokercheck 10.5.18


If you lost money with CIM Securities, 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.



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