Noble Capital Markets, Inc. fka Noble Financial Capital Markets Has Been the Subject of a FINRA Sanction
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Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on December 17, 2017 indicate that Boca Raton-based brokerage firm Noble Capital Markets, Inc. fka Noble Financial Capital Markets (CRD #15768) has received a FINRA fine. Dietrich P. Epperson, Esq. is interested in speaking to investors who have complaints regarding Noble Capital Markets, Inc. fka Noble Financial Capital Markets.
Noble Capital Markets, Inc. fka Noble Financial Capital Markets has been in the securities industry for thirty-three years. According to its BrokerCheck report, it has seven FINRA sanctions, has been involved in twelve arbitration customer complaints, and most recently was fined $225,000.00.
Sale of Common Stock
In October 2017, without admitting or denying the allegations, the firm consented to the sanctions and to the entry of findings that it recommended and sold nearly a million shares of a company’s common stock to customers without disclosing the firm’s multiple and material conflicts of interest. The findings stated that the firm aggressively promoted and recommended the company’s common stock to prospective investors to profit from the firm’s undisclosed investment banking relationships with the company and its undisclosed arbitrage of the company’s securities, which created a financial incentive for the firm to recommend the common stock to customers.
To boost the sale of the company’s common stock, the firm aggressively promoted and solicited purchases of the common stock by issuing research through the firm’s research department, conducting non-deal road shows through the firm’s investment banking and institutional sales departments, and contacting prospective investors, primarily institutions, through registered representatives in the firm’s institutional sales departments. The firm also provided the representatives with a misleading sales script to use when soliciting prospective investors in the company’s common stock.
Violation of the Securities Act
The findings also stated that the firm failed to disclose to the customers who purchased the company’s common stock of the firm’s advisory and warrant agreements with the company and the compensation it received and anticipated receiving thereunder. In addition, the firm failed to disclose to the customers the additional compensation the firm promised its registered representatives for promoting, recommending and selling the company’s stock, and of the firm’s speculative arbitrage strategy in the company’s securities that created a financial incentive for the firm to recommend the company’s stock. The firm did not disclose or take any steps to ensure that the representatives disclose to the customers to whom they recommended and sold the common stock that the firm was engaged in the speculative arbitrage strategy. As a result, the firm violated Section 17(a) (2) of the Securities Act of 1933 (Securities Act). The findings also included that the firm issued research reports that failed to disclose that it had a current client relationship with the company, and the firm expected to receive or intended to seek compensation from its investment-banking activities with the company in the three months that followed the issuance of the research reports.
Delaware County FINRA Arbitration Lawyer
If you or someone you know has lost money investing with Noble Capital Markets, Inc. fka Noble Financial Capital Markets, call Dietrich P. Epperson, Esq. for a free consultation. You may be eligible to recoup your losses. Dietrich P. Epperson, Esq. 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 610.314.5645 now to speak to an attorney for free.