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Miami Investment Fraud Attorney
305.372.9700
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SunTrust International Center
Miami, Florida 33131

Florida Brokerage Firm Expelled from the Securities Industry By FINRA for Failure to Pay a Fine

Midtown Partners (CRD#: 104223/SEC#: 8-52685) is a previously registered brokerage firm. With its primary office in Land O’ Lakes, Florida, Midtown Partners was licensed to do business in several other jurisdictions. Early this year, the brokerage firm was expelled by the Financial Industry Regulatory Authority (FINRA) for its failure to pay financial penalties previously incurred.

The fine was initially issued to the broker-dealer after securities industry regulators determined that the firm lacked a proper supervisory system. Below, our Miami investment fraud lawyers provide a more detailed overview of the allegations against the Florida-headquartered broker-dealer.

2019: Midtown Partners Censured, Fined for Inadequate Supervisory System 

In May of 2019, FINRA determined that Midtown Partners lacked a proper supervisory system. Without admitting to or denying the allegations, Midtown Partners consented to the findings by the agency. The firm was publicly censured and FINRA issued a $50,000 fine. To comply with securities industry rules, broker-dealers must put a proper supervisory system in place. Failure to do so puts investors at risk. 

2020: Midtown Partners Expelled for Failure to Pay FINRA Fine 

In March, FINRA took enforcement action against Midtown Partners for its failure to pay the full balance of the fine. According to information from the securities regulator, the brokerage firm still owed $38.918.61 in penalties/fees. Failure to pay without taking corrective action warrants additional sanctions.

Under FINRA Rule 8320, brokerage firms and individual financial advisors can be expelled from the industry if they fail to pay monetary sanctions. Typically, as occurred in this case, a brokerage firm will be suspended before it is actually expelled. If satisfactory arrangements are not made, then the suspension can be upgraded to an expulsion.

Investors Sometimes Struggle to Collect on Arbitration Awards 

Unfortunately, FINRA’s monetary sanctions are not the only financial penalties that sometimes go unpaid. In some cases, wronged investors struggle to collect on a favorable arbitration award. Brokers and broker-dealers must pay the full value of a FINRA arbitration decision within 30 days of the date of the decision, unless a motion to vacate has been filed.

Under securities industry rules, a broker or brokerage firm who fails to pay after losing at arbitration can face sanctions—potentially including expulsion from the securities industry. From there, investors have some other legal options that can be used to enforce/collect on an award. If you have specific questions about unpaid arbitration awards, an experienced FINRA arbitration attorney can help. 

Contact Our Miami, FL Investment Fraud Lawyer for Immediate Help

At ​Carlson & Associates, P.A., our Florida securities law attorneys are experienced, results-focused advocates for investors. Our team has extensive experience representing investors in arbitration proceedings and securities litigation. If you suffered losses because of a brokerage firm’s failure to supervise its financial representatives, we are here to protect your rights. To arrange a completely confidential consultation, please call our Miami office today at (305) 372-9700 or reach out to us online.

Resource:

/brokercheck.finra.org/firm/summary/104223

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