Newbridge Securities Fined $225k For Failure to Supervise

October 8, 2019 Author: Brian Levin
Newbridge Securities

FINRA Censures and Fines Financial Firm For Failing to Supervise Agent

According to the Financial Industry Regulatory Agency (FINRA), Newbridge Securities Corporation (Newbridge) has agreed to pay a $225,000 fine for failing to supervise one of their agents.  The regulatory agency censured Newbridge and required it to hire an independent consultant to help revamp its supervisory system or procedures. According to publicly-available records, the penalty comes after Newbridge allegedly failed to reasonably supervise the sale of structured products and non-traditional ETFs, failed to conduct or supervise reasonable due diligence on a private offering and failed to deposit escrow funds into an independent bank escrow account.  Newbridge agreed to the sanctions which concluded that they violated section 15(C) of the Securities Exchange Act of 1934 and Rule 15c2-4. 

A review of  FINRA’s BrokerCheck indicates that Newbridge allegedly failed to supervise the sale of structured products and leveraged, inverse, and inverse-leveraged exchange-traded funds (non-traditional ETFs).  Furthermore, the financial firm lacked the proper systems to adequately supervise agents, instead of relying on “due diligence conducted by the issuer of the offering.”

In  FINRA’s Letter of Acceptance, Waiver, and Consent (AWC), Bruce H. Jordan was also fined for his involvement.  Jordan served as Newbridge’s Director of Investment Banking at the time of the alleged incident.  The imposed sanction against Jordan included “a two-month suspension from association with any FINRA member in a principal capacity.”

This is not the first time that Newbridge has faced scrutiny for failure to supervise.  In 2017, the firm was required to pay a $499,000 administrative assessment to the State of Pennsylvania for failure to reasonably supervise one agent in connection with sales of structured products.

Financial institutions and investment firms owe their clients a duty to properly supervise their financial advisors and make sure that they recommend and sell only suitable investments. If a firm fails to adequately supervise its agents and customers suffer financial losses, that firm may be liable to the customers for such losses.  Investors may pursue such claims, including failure to supervise claims, through a FINRA arbitration. If you believe that you suffered losses with Newbridge or any other brokerage firm from investments in ETFs, structured products, private equities, private placements, or other securities, contact Levin Law for a free case evaluation to determine whether you may be able to recover your losses through a FINRA arbitration.  Levin Law has recovered millions for victims of securities and investment fraud.  Call Levin Law today for a free initial case consultation at (305) 402-9050.

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