DH Hill Securities: 2 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 24, 2019 indicate that Texas-based broker-dealer firm DH Hill Securities has received regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding DH Hill Securities (CRD# 41528).
Established in Texas in 1996, DH Hill Securities is headquartered in Kingwood, Texas and registered with 48 US states and territories. The firm’s fiscal year ended in December. According to its BrokerCheck report, DH Hill Securities has received two regulatory sanctions.
In 2016 FINRA sanctioned the firm in connection to allegations it failed to seek or receive FINRA authorization to move forward with a real estate investment trust offering after it replaced the offering’s previous manager. According to FINRA’s findings, rather than seek or receive FINRA’s authorization, the firm “improperly relied on a prior no objections opinion issued to the predecessor manager,” but to whose terms and arrangements DH Hill Securities was not a party. FINRA’s findings state that the earlier no-objections opinion mandated the filing of any amendments with FINRA, and that the firm failed to comply with a requirement that it file documents upon the initiation of a follow-on offering by the real estate investment trust. FINRA rules require the filing of relevant documents within one day after they are submitted to the Securities and Exchange Commission; however, according to the allegations, the firm did not make such filings until about six months after it was required to. FINRA’s findings state further that the firm lacked adequate supervisory procedures “to monitor for and address the accumulation of excessive underwriting compensation,” and that the firm failed to designate anyone to supervise its compliance with “underwriting compensation or expense limits.” As a result of these alleged failures, according to FINRA, the firm could not timely “provide an accurate accounting” of its compensation for underwriting, and depended on “inaccurate information” provided by third parties concerning its dealer manager fees, resulting in its reporting of inaccurate information to FINRA. In connection with these findings, the firm was censured and issued a fine of $30,000.
In 2013 the Maryland Division of Securities sanctioned the firm in connection to allegations it failed to maintain a registered agent in the state, per requirements, and failed to respond to an order directing the firm to “show cause and issue an order of summary suspension” resulting from its failure to maintain a registered agent in the state. In connection with these findings, the firm’s registration in the state was revoked—an order that was later vacated—and it was issued a fine of $1,500.
If you have complaints regarding DH Hill Securities, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recoup your losses. All cases are taken on a contingency basis: we only receive payment if and when you recover 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.