Colorado Financial Service Corporation: 2 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 11, 2019 indicate that Colorado-based brokerage firm Colorado Financial Service Corporation has received FINRA sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Colorado Financial Service Corporation (CRD# 104343).
Established in Colorado in 2008, Colorado Financial Service Corporation is headquartered in Centennial, Colorado and registered with 53 US states and territories. According to its BrokerCheck report, the firm has received two regulatory sanctions.
In 2014 the SEC sanctioned Colorado Financial Service Corporation in connection to allegations it failed to properly handle client funds in connection with two private placement investments. According to the SEC’s findings, in connection with one of these private placements, the firm “received, deposited, and held three customers’ funds,” and that because of this conduct the firm failed to comply with net capital and customer protection obligations. The SEC also stated that it failed to provide notifications to the SEC about its net capital deficiencies, and failed to create and maintain accurate books and records. The SEC states further that in connection with the second private placement investment, a contingent offering, the firm received client funds and forwarded them to the product’s issuer, rather than the issuer’s bank escrow agent, violating the Exchange Act. In connection with these findings, the firm was censured and issued a fine of $25,000.
In 2014 FINRA sanctioned the firm in connection with allegations it failed to establish, maintain, and enforce an adequate supervisory system and written procedures concerning the supervision and review of electronic communications during a period in which the firm “only manually reviewed between 0.1% and 1.5%” of its total archived emails in that period. FINRA’s findings state that firm WSPs concerning electronic communications did not identify the party responsible for supervisory review, the manner in which such a review would be conducted performed and recorded, and by what protocols firm personnel would escalate any regulatory issues that came up in their review of electronic communications. FINRA’s findings also state that the firm failed to establish, maintain and enforce systems and procedures that were adequately designed to ensure due diligence of private placement and non-traded real estate investment trust products, and that firm WSPs did not lay out the procedures by which the firm would meet due diligence obligations, or the records it would create concerning such. In connection with these findings, the firm was censured and issued a fine of $10,000.
If you or someone you know has a complaint regarding Colorado Financial Service Corporation, call 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 to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.