Coastal Equities: 5 Regulatory Complaints
Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 11, 2019 indicate that Delaware-based brokerage firm Coastal Equities has received several FINRA sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Coastal Equities (CRD# 23769).
Established in Massachusetts in 1989 and organized as a corporation, Coastal Equities is headquartered in Wilmington, Delaware and registered with 52 US states and territories. According to its BrokerCheck report, the firm has received five regulatory sanctions.
In April 2018 FINRA sanctioned Coastal Equities in connection to allegations it executed corporate bond transactions for its own account at an aggregate price that was not fair or reasonable for customers. FINRA’s findings state that the firm’s supervisory procedures were not designed to achieve compliance with relevant laws and regulations, and that the firm’s corporate bond exception report was inadequately designed in that it failed to calculate mark-ups and mark-downs in percentages, but rather only in “absolute dollar values.” The findings also state that the firm did not make that report available to the principal responsible for evaluating the reasonableness of mark-ups and mark-downs, and that its supervisory system did not subject to review the mark-ups mark-downs conduct of its corporate debt and municipals principal, who also served as its corporate debt traders. In connection with these findings, the firm was censured and issued a fine of $90,000.
In 2017 the Securities and Exchange Commission sanctioned Coastal Equities in connection to allegations it failed to reasonably supervise its former president and CEO, with a view toward identifying and preventing his violations of securities laws. According to the SEC, the former CEO, who also worked as a firm investment adviser representative, stole more than $1.5 million from at least 12 advisory clients. According to the SEC, he made false and misleading statements to the customers that persuaded them to invest in securities, then directed them to write checks payable to an entity under his control “so he could allegedly purchase the securities” for them. However, according to the SEC, instead of investing the funds per his representations, he “deposited the checks into a bank account” under his control and used the money “for his own personal and business purposes,” concealing his activity from the clients by “manually inputting fictitious investments into consolidated reports” which he provided to clients, falsely leading them to believe he had made the investments in question. In connection with these findings, the firm was censured and issued a fine of $40,000.
In 2017 the New Jersey Bureau of Securities sanctioned the firm in connection to allegations it failed to reasonably supervise the conduct of an individual who conducted investment advisory business from and in the state, on the firm’s platform, without registering with the Bureau of Securities. In connection with these findings, the firm was issued a fine of $60,000.
If you or someone you know has a complaint regarding Coastal Equities, call the attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recover lost funds. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. You may have a limited window by law to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.