World Equity Group Inc: Private Placement Due Diligence Failure Allegations
World Equity Group, Inc. Allegedly Failed to Perform Adequate Due Diligence in Many Private Placements
World Equity Group, Inc. (WEG) allegedly permitted one of its registered representatives to publish advertisements that failed to provide a sound basis for a reader to evaluate the products and services being offered, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).
In addition, the AWC contends, the advertisements allegedly contained exaggerated, unwarranted and misleading statements, and that WEG had an inadequate supervisory system relating to communications and advertising.
World Equity Group, Inc. Also Allegedly Failed to Properly Observe Insider Trading Red Flags; Censured and Fined $225,000
What is more, WEG also failed to have a reasonably designed Anti-money laundering (AML) program to detect, investigate and report, where appropriate, potentially suspicious activities, according to the AWC.
The AWC reports that WEG violated several NASD and FINRA Rules, including: failure to preserve emails in violation of SEC, FINRA and NASD Rules, failure to establish and maintain account records and obtain suitability information for 13 accounts of one representative, and failure to have a reasonable supervisory system to ensure compliance with the Securities Act of 1933.
As a result, FINRA issued WEG a censure and a $225,000 fine.
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The Peiffer Wolf Carr & Kane investment recovery lawyers often represent investors who lose money as a result of investment misconduct. 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 misconduct may contact the investment recovery lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.