Violation Tracker Individual Record

Company: 
Securities America, Inc.
Current Parent Company: 
Reverence Capital Partners
Penalty: 
$16,300,000
Year: 
2006
Date: 
September 14, 2006
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Secondary Offense: 
financial institution supervision failures
Violation Description: 

NASD fined Securities America, Inc. $2.5 million for failing to adequately supervise a broker who NASD alleged lured long-term employees of Exxon Corporation into retiring prematurely with unreasonable and exaggerated promises of high returns from reinvested funds from their company retirement plans. Securities America was also required to pay $13.8 million in restitution to 32 former Exxon employees.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Financial Industry Regulatory Authority
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
New York
Ownership Structure of Parent: 
privately held
Major Industry of Parent: 
private equity (including portfolio companies)
Specific Industry of Parent: 
private equity (including portfolio companies)
Source of Data: 

NASD Fines Securities America $2.5 Million, Orders $13.8 Million in Restitution in Investment Scheme Aimed at Exxon Retirees, PR Newswire, September 14, 2006 (via Nexis).

Notes: 

FINRA is a securities industry self-regulatory body authorized by the federal government. This case was handled by its predecessor, the National Association of Securities Dealers (NASD).

Source Notes: 
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Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.