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FINRA Sanctions Melvin Securities Over Alleged Rule Violations

Melvin Securities

Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on November 29, 2018 indicate that Illinois-based brokerage firm Melvin Securities has been sanctioned by FINRA in connection to alleged filing, record-keeping and net capital rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Melvin Securities (CRD# 29767).

According to a letter of Acceptance, Waiver and Consent (No. 201604823060) released by FINRA, Melvin Securities violated SEC and FINRA rules requiring firms to “make and keep an accurate general ledger and trial balance, and to make and keep accurate net capital calculations.” Specifically, FINRA’s findings state that between April 2014 and July 2014, the firm committed these failures by failing to “timely accrue liabilities for certain invoices.” It consequently filed an inaccurate financial and operational report for April 2014 that overstated the firm’s net capital; an inaccurate report for May 2014 that understated its net capital; an inaccurate report for June 2014 that overstated its capital; and an inaccurate report for July 2014 that overstated its capital, according to FINRA. Later, from July 29, 2016 until August 13, 2016, according to FINRA, the firm failed to timely accrue its liabilities for three invoices, and consequently failed in its responsibility to make and keep current an accurate general ledger, net capital calculations, and trial ledger. In connection with these findings, FINRA censured the firm and issued it a fine of $15,000.

According to the firm’s BrokerCheck report, it has received four previous regulatory sanctions.

In 2013, for instance, FINRA sanctioned the firm in connection to allegations it failed to adequately supervise its due diligence for municipal offerings. The firm was censured and issued a fine of $25,000.

In 2013, FINRA sanctioned the firm in connection to allegations it failed to file its annual audit report for the month of December 2012 within 21 days after service of a notice of suspension dated March 18, 2013. The firm was suspended from FINRA membership until it filed its 2012 annual audit report.

In 2009 FINRA the National Futures Association sanctioned the firm in connection to the entry of a consent judgment against the firm. It was placed on conditional registration.

And in 1999, the National Association of Securities Dealers sanctioned the firm in connection to allegations, among others, it inaccurately reported short sales, in violation of NASD rules. The firm was censured and issued a fine of $8,500.

If you have lost money investing with Melvin Securities, you may be entitled to recoup your losses. Call the attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis, which means we only get paid if and when you collect money. Time to file your claim may be limited by law, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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