Ignore the Cautions Identified by Third-Party Analysts at Your Own Risk
BD Week
6/13/2011
“A broker-dealer’s recent settlement with the state of Massachusetts shows why you shouldn’t let the business side of your firm disregard warnings from third-party analysts hired to review private placements of rule 506 securities.
The Nebraska-based firm Securities America will pay at least $2.8 million in restitution to about 60 Massachusetts investors who purchased Medical Capital Notes from the firm’s reps, according to a settlement reached last month with the Massachusetts Securities Division.”
In this article, “Ignore the Cautions Identified by Third-Party Analysts at Your Own Risk,” published on June 13, 2011 in BD Week, Mintz Levin attorney Steve Ganis stresses that now more than ever, broker-dealers must be vigilant when conducting due diligence in private placements.
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