Sandlapper Securities: 4 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 17, 2019 indicate that South Carolina-based brokerage firm Sandlapper Securities has received regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Sandlapper Securities (CRD# 137906).
Established in South Carolina in 2005, Sandlapper Securities is headquartered in Greenville, South Carolina and registered with 51 US states and territories. Organized as a limited liability company, the firm’s fiscal year ends in December. According to its BrokerCheck report, Sandlapper Securities has received four regulatory sanctions.
In March 2018 FINRA sanctioned the firm in connection to allegations it failed to file it annual audit report within 21 days after it was served with a notice of suspension. The firm was issued a suspension.
In 2012 the Colorado Division of Securities sanctioned the firm in connection to allegations it failed to comply with two provisions of an “order of effectiveness” for one of its registered representatives in Colorado, specifically orders that it complete two surprise audits in the span of a year and also that it notify the state of supervisory personnel changes. In connection with these findings, the firm was ordered to pay a fine of $10,000.
In 2013 the State of South Dakota Department of Labor Regulation Division of Securities sanctioned the firm in connection to allegations it used general advertising during the offering and sale of a private placement, consequently violating the Securities Act of 1933. The Division’s findings state that the firm did not reasonably supervise a certain representative’s advertising activities and additionally failed to have in place written supervisory procedures that explained how general advertising, or general solicitation, could not be used during Regulation D offering and sales. In connection with these findings, the firm was issued a fine of $2,000.
In 2018 FINRA named Sandlapper Securities respondent in a complaint alleging it engaged in a “fraudulent scheme and defrauded investors” when it sold investments in saltwater disposal wells with markups that were excessive and undisclosed. According to FINRA’s findings, the sales were made through a development company acting as a middleman which was owned and controlled by the firm, as well as its CEO and principal, and that the markups exceeded $8 million. According to FINRA’s findings, the CEO extracted “ill-gotten profits from retail investors” using the development company. In connection with these findings, the firm was expelled from FINRA membership and ordered to pay more than $901,000, as well as restitution exceeding $2.4 million. FINRA’s decision is currently on appeal.
If you or someone you know has a complaint regarding Sandlapper Securities, 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 contingency: 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.