Madison Avenue Securities: 4 Regulatory Actions, 1 Customer Complaint
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 13, 2019 indicate that California-based brokerage firm Madison Avenue Securities has received a customer complaint and regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Madison Avenue Securities (CRD# 23224).
Established in Delaware in 2005, Madison Avenue Securities is headquartered in San Diego, California and registered with 53 US states and territories. It conducts 12 types of business, including: broker or dealer selling corporate debt securities; mutual fund retailer; put and call broker or dealer or option writer; and investment advisory services. According to the firm’s BrokerCheck report, Madison Avenue Securities is the subject of three regulatory sanctions.
In 2016 FINRA sanctioned the firm in connection to allegations it failed to put in place written procedures of a supervisory system regarding the production and distribution of consolidated reports. According to FINRA’s findings, 39 of the firm’s approximately 140 representatives “used multiple systems to prepare and distribute consolidated reports to customers,” of which 21 used templates that permitted manual entry of account information. According to FINRA, the firm disseminated about 6,800 reports to clients, about 4,500 of which were made with templates allowing for manual entry of information, with 7 representatives using templates that did not contain adequate disclosure. In connection with these findings, the firm was censured and issued a fine of $75,000.
In 2013 FINRA sanctioned the firm in connection to allegations that one of its representatives engaged in private securities transactions while involved in private placement offerings. According to FINRA’s findings, that individual informed the firm in writing when he first registered with it that he owned and managed an entity involved in a private securities option which he “participated in selling, and that he intended to form another entity” and launch a related private offering. He also allegedly told the firm of his involvement as portfolio manager of funds raised in those offerings and his opportunity to profit from portfolio transactions. FINRA’s findings state that the firm noted the representative’s outside business activity, but “failed to record the transactions on its books and records” and additionally failed to supervise the representative’s activity in connection with those private securities transactions. In connection with these findings, the firm was censured and issued a fine of $12,500.
In 2016 a customer alleged Madison Avenue Securities breached its fiduciary duty, churned investments, committed fraud, made unsuitable investment recommendations, executed unauthorized transactions, failed in its supervisory duties, and acted negligently in connection to unspecified investments. The complaint resulted in an award to the customer of more than $913,100.
If you or someone you know has lost money investing with Madison Avenue Securities, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.