South Florida Brokerage Firm Fined for Failure to Supervise Private Placement Offerings; Broker Suspended
Bruce Howard Jordan (CRD#: 1223556) is a licensed securities broker. Since February of 2015, Mr. Jordan has been associated with Newbridge Securities Corporation (CRD #104065) based in Boca Raton, Florida. Prior to that, he also served as a representative for Bedminster Financial Group, Midtown Partners & CO., and VFinance Investments.
Earlier this Fall, Bruce H. Jordan and Newbridge Securities Corporation were sanctioned by FINRA for failing to properly supervise the sale of private placement investments—which included complex structured financial products and non-traditional ETFs. Among other things, Mr. Jordan was suspended by regulators for two months.
Failure to Supervise Offering of Structured Products and Non-Traditional ETFs
The Financial Industry Regulatory Authority (FINRA) brought regulatory action against both Newbridge Securities Corporation and representative Bruce Howard. The underlying conduct at issue in this case occurred between 2013 and 2016. During that time, investigators determined that Newbridge Securities Corporation failed to create and maintain adequate protocols to oversee the sale of a number of different private placement offerings, including:
- Structured notes;
- Leveraged exchange traded funds (ETFs); and
- Inverse exchange traded funds (ETFs).
As a result of improper supervision, the brokerage firm did not ensure compliance with relevant securities industry suitability requirements. Under FINRA Rule 2111, broker-dealers have a duty to offer investment guidance that is reasonably suitable for their customers.
Notably, Bruce H. Jordan served as the Director of Investment Banking at Newbridge Securities Corporation during much of the review period. The firm’s written protocols stated that Mr. Jordan was responsible for due diligence of these private securities offerings. However, FINRA assessed that there was insufficient oversight of the private securities.
Private Placement Investments: Know the Risks
Private placement offerings have the potential to be extremely risky. The simple fact is that they are not appropriate for all investors. It is crucial that brokerage firms put the proper structure and system in place to protect their customers from unreasonable risks. When offering private placements, broker-dealers are responsible for oversight. The lack of an effective supervisory system could expose investors to major losses in private placement securities.
Sanctions: Newbridge Securities and Broker Bruce Jordan
Without admitting or denying wrongdoing, Newbridge Securities Corporation and Bruce Jordan consented to FINRA’s findings and its proposed sanctions. To start, the brokerage firm agreed to pay a $225,000 fine and agreed to work with an independent consultant to create an effective supervisory system to oversee its private placement offerings going forward. Additionally, Mr. Jordan agreed to pay a $5,000 fine and accept a 60 day suspension from the securities industry.
Reach Out to Our Miami Securities Fraud Attorneys Today
At Carlson & Associates, P.A., our Miami investment fraud attorneys have extensive experience handling a wide range of securities fraud and broker negligence claims. If you suffered losses in a private placement due to a brokerage firm’s failure to supervise, we can help. Call us now for a confidential case evaluation. With an office in Miami, we serve investors in South Florida and beyond.
Resources:
brokercheck.finra.org/individual/summary/1223556
brokercheck.finra.org/firm/summary/104065
