FINRA Sanctions Delaney Equity Group, LLC
Delaney Equity Group, LLC
Did you lose money investing in Penny Stocks with Delaney Equity Group, LLC? Blum Law Group is investigating both the sales practices of Delaney Equity Group, LLC advisors and the penny stocks.
If you suffered financial losses from the sale of Penny Stocks with Delaney Equity Group, LLC, contact Blum Law Group today by calling at 1-877-STOCK LAW (1-877-786-2552) or email us to set up a free consultation to discuss your legal options.
Delaney Equity Group, LLC
FINRA reports Delaney Equity Group, LLC (CRD® #142285, Palm Beach Gardens, Florida) and David Cameron Delaney (CRD #2447186, Registered Principal, West Palm Beach, Florida) submitted an Offer of Settlement in which the firm was censured and fined $215,000. The firm was prohibited from directly or indirectly receiving, in any manner, any penny stock in any form, and prohibited from selling, for the benefit of any customer or firm proprietary account, any penny stock deposited with the firm (including through the firm’s clearing firm) by Automated Customer Account Transfer (ACAT) unless the stock has been held in the account for at least 180 days or has been beneficially owned by the accountholder, including the accountholders predecessors, if any, for the requisite statutory period not to be less than 180 days, and in amounts not to exceed the volume limitations prescribed by the applicable federal securities laws; or the stock is subject to an effective registration statement. The firm shall retain, within 60 days of the date of the Order Accepting Offer of Settlement, an independent consultant, to conduct a comprehensive review of the adequacy of the firm’s policies, systems and procedures (written and otherwise) and training relating to the compliance with Section 5 of the Securities Act of 1933, applicable rules and regulations with respect to the distribution of unregistered non-exempt securities, compliance with the requirements of the Bank Secrecy Act, and the regulations promulgated thereunder. Delaney was fined $40,000, suspended from association with any FINRA® member in any capacity for two months, and suspended from association with any FINRA member in any principal capacity for 13 months to run consecutively from the termination of the two-month suspension in any capacity.
Without admitting or denying the allegations, the firm and Delaney consented to the described sanctions and to the entry of findings that the firm, acting through Delaney, its president, chief compliance officer (CCO) and anti-money laundering compliance officer (AMLCO), allowed a customer and its numerous affiliated accounts to sell almost a billion newly issued, unregistered equity shares of some issuers. As a result, the firm and Delaney participated in the distribution of almost a billion shares of unregistered and non-exempt securities. The findings stated that the firm, acting through Delaney, failed to establish, maintain and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to ensure compliance with Section 5 of the Securities Act of 1933 and applicable rules and regulations with respect to the distribution of unregistered and non-exempt securities.
The findings also stated that the firm, acting through Delaney, failed to abide by the terms of its membership agreement by failing to enforce its WSPs for supervising individuals with prior disciplinary disclosures at a heightened level. The findings also included that the firm, acting through Delaney, failed to adequately implement anti-money laundering (AML) policies, procedures and internal controls, and enforce its AML compliance program (AMLCP) by failing to identify a customer who had a regulatory history, failed to detect highly suspicious activity, properly investigate the suspicious activity and report suspicious activity as required. This suspicious activity included, but was not limited to, deposits of almost a billion shares of low-priced equity securities into multiple related accounts, the liquidation of those shares soon after they were deposited, and the wiring of the sales proceeds out to the accounts soon after their liquidation. FINRA found that the suspicious activity included the deposit, journaling, sale and wiring of the sales proceeds involving low-priced biotech stocks in accounts related to or referred by a customer with a regulatory history.
WHAT YOU CAN DO TO RECOVER YOUR INVESTMENT LOSSES
If you purchased Penny Stocks from Delaney Equity Group, LLC, you might have a claim. You can have your financial accounts reviewed by our attorneys who can advise you on whether you have a legal claim against Delaney Equity Group, LLC for unethical behavior. The case evaluation is FREE!! MOREOVER, IF YOU HAVE A CASE, WE HANDLE THEM ON A CONTINGENCY FEE SO IF WE DO NOT RECOVER MONEY FOR YOU, YOU WILL NOT PAY US AN ATTORNEYS FEE.
Blum Law Group is a securities law firm that has helped investors recover millions of dollars for their investment losses. If you suffered losses, call us today at 1-877-STOCK LAW (1-877-786-2552) or email us to set up a free consultation to discuss your financial situation and legal rights.