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Mid Atlantic Capital Corporation Was Sanctioned For Failing to Supervise its Advisors


Mid Atlantic Capital Corporation

Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on June 9, 2017 indicate that Pennsylvania-based brokerage firm Mid Atlantic Capital Corporation was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mid Atlantic Capital Corporation (CRD# 10674).

Established in Pennsylvania in 1981, Mid Atlantic Capital Corporation is headquartered in Pittsburgh, Pennsylvania and registered with 53 US states and territories. Joseph Banco Jr. is Chief Financial Officer; Timothy Brown is Chief Compliance Officer and Executive Vice President; Jeanine Devine is Vice President; David Down is President; Sarah Fong is President. The firm is registered with the Securities and Exchange Commission, FINRA and one other self-regulatory organization.

According to the firm’s BrokerCheck report, Mid Atlantic Capital Corporation was recently sanctioned by FINRA.

In April 2017 FINRA sanctioned the firm following allegations it “failed to adequately supervise the private securities transactions of two registered representatives, TD and WG,” in violation of FINRA and NASD rules. According to a letter of Acceptance, Waiver and Consent (No. 2013039024401) signed by the firm: “At the time of their association with Mid Atlantic, TD and WG informed the Firm about their involvement with a hedge fund… which operated out of their office in Buffalo, New York. From September 2011 to January 2013, TD and WG participated in securities transactions through the Fund, and received compensation from the Fund in connection with those transactions. Mid Atlantic was not compensated in connection with these securities transactions. Nevertheless, the Firm was required to supervise them and include them on its own books and records in accordance with NASD Rule 3040. It did not do so.”

The AWC Letter states further: “Mid Atlantic did not recognize that the representatives’ involvement with the Fund constituted private securities transactions, rather than an outside business activity. Accordingly, the Firm did not record the securities transactions of the Fund on the Firm’s books and records. The Firm did not supervise the Fund’s transactions or portfolio activity other than by receiving monthly statements from the Fund’s custodian and administrator. As a result, the Firm failed to detect that, during the time they were registered through the Firm, TD and WG accepted new Fund subscriptions of approximately $1.25 million.” This conduct constitutes violations of NASD Rules 3040 and 3010 and FINRA Rule 2010, according to FINRA. The firm was censured and issued a fine of $100,000.

If you have lost money investing with Mid Atlantic Capital Corporation, call Fitapelli Kurta at 877-238-4175 without delay. You may be entitled to recoup your losses. We accept all cases on contingency: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited by law, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.