BB&T Securities Sanctioned by Securities Regulators For the Sale of Unregistered Securities
Scott & Stringfellow, LLC, before it merged with BB&T Securities, LLC, sold unregistered securities in violation of Securities Act of 1933, according to factual findings made by the Financial Industry Regulatory Authority (FINRA). BB&T Securities was fined $300,000 and censured in connection with the claims that Scott & Stringfellow sold unregistered securities.
Scott & Stringfellow participated in the sale of approximately 242 million shares of unregistered low-priced securities from September 1, 2011 to December 28, 2011, according to FINRA. Scott & Stringfellow sold low-priced securities by four companies – Gepco Ltd (KNSL), Power Save Energy Co (PWSV), MediSwipe, Inc. (MWIP), and 247 Mgi Inc (TOFS) – and generated proceeds of approximately $537,000, according to FINRA.
Scott & Stringfellow also failed to enforce written supervisory procedures concerning the sale of unregistered securities, according to FINRA. Scott & Stringfellow lacked documentation to show that it performed any reviews or asked the questions the Firm’s written supervisory procedures mandated before it sold KNSL, PWSV, MWIP, and TOFS, according to FINRA.
Generally, low-priced securities, such as penny stocks, may pose issues for investors. For instance, many of the companies that have issued securities that become low-priced securities have not provided a great deal of information about the issuer so investors can make an informed decision as to whether or not they should purchase the securities. Additionally, low-priced securities, such as penny stocks, are typically not as liquid as stocks traded on the New York Stock Exchange. This lack of liquidity may make it difficult for an investor to sell the securities since there may not be many buyers for those particular securities and the investor may have to lower his or her asking price in order to find a buyer.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.