Miami Brokerage Firm Fined for Misleading Promises to Prospective Investors

Avenue Securities LLC (CRD #292589) is a brokerage firm headquartered in Miami that is licensed to operate in 30 states and territories. In January of 2025, the Financial Industry Regulatory Authority (FINRA) fined and censured the broker-dealer for failure to develop a proper supervisory system. Specifically, FINRA determined that the firm made misleading promises to prospective investors. Here, our Miami securities fraud attorney provides a more detailed overview of FINRA’s enforcement action.

Miami Brokerage Firm Sanctions: Avenue Securities LLC 

On January 22nd, 2025, FINRA  took disciplinary action against Avenue Securities LLC—a brokerage firm based in Miami. The firm was officially reprimanded, fined $300,000, and required to confirm that it has fixed the issues identified by the agency. As part of the enforcement action, the Miami-based brokerage firm must develop and implement a proper system to supervise social media communications made by all of its representatives. Without admitting or denying any of the specific allegations, Avenue Securities LLC consented to FINRA’s proposed sanctions. Here are some of the key points raised in the case:

• The firm used marketing strategies with social media “influencers” that falsely implied that certain investments would generate guaranteed dividend income;
• The marketing posts in question exaggerated the potential for investors to get rich; and
• The firm marketed investments in cryptocurrencies without clearly stating the risk—that investors could lose much or all of their investment.

In its enforcement action, FINRA emphasized that the Miami-based brokerage firm failed on supervision. The agency noted that most of the social media influencer posts in questions did not make it clear that they were paid advertisements. Further, FINRA found that Avenue Securities had weak internal controls over this type of marketing. No registered principal at the firm reviewed and approved the influencer content before they were posted.

 Brokers-Dealers Have a Responsibility to Make Fair Representations to Investors 

Here is a key point to know: Registered broker-dealers have a clear and fundamental responsibility to ensure that all communications with actual and prospective investors are fair, balanced, and not misleading. Among other things, the responsibility applies to statements made on social media or by third-party influencers promoting the firm. Any claim about potential returns must be supported by facts and accompanied by appropriate risk disclosures.

What does that mean? It means that misleading or exaggerated promises—such as guaranteed profits or “free” services without clarifying limitations—can misinform the public and violate regulatory standards. The Avenue Securities LLC case highlights that these violations can lead to enforcement action against a financial advisor or a brokerage firm.

Set Up a Confidential Consultation With a Miami Securities Fraud Attorney

At ​Carlson & Associates, P.A., our Miami securities fraud attorney is standing by, ready to protect your rights and your interests as an investor. If you have any questions about bringing a claim against a brokerage firm, we are here to help. Contact us today for a fully confidential, no obligation consultation. Our firm represents investors in Miami, South Florida, and communities beyond.

Source:

brokercheck.finra.org/firm/summary/292589