Florida Brokerage Firm Facing Complaint For Material Misrepresentations
Fusion Analytics Securities LLC (CRD#: 124245/SEC#: 8-65649) is a previously registered brokerage firm. The broker-dealer was headquartered in Coral Springs, Florida. In March of 2022, its registration was terminated. On April 8th, 2022, FINRA’s Department of Enforcement filed a complaint against Fusion Analytics Securities LLC alleging that the firm willfully violated Section 10(b) of the Exchange Act (FINRA Case #2018059545604). Below, our Miami investment fraud attorney explains in more detail the specific allegations raised against the Florida brokerage firm.
FINRA Complaint: Florida Brokerage Firm Fusion Analytics Securities LLC
Background
Fusion Analytics Securities LLC was a registered broker-dealer from early 2003 until March of 2022. At the time, Fusion’s registration was terminated. The specific allegations at issue in the complaint filed by the FINRA Department of Enforcement occurred between 2017 and 2019. According to the complaint, Fusion’s managing partner and one of its registered representatives engaged in securities fraud. The alleged fraud was related to a private bond offering of an investment product called NewCo Bond Offerings.
FINRA Alleges Improper Sales of NewCo Bond Offerings
FINRA alleges that Fusion Analytics Securities LLC acted as the placement agent for NewCo Bond Offerings. According to FINRA, the Florida-based brokerage firm agreed to do so despite the fact that it was aware that the NewCo Bond Offerings promoter had previously been cited by the Securities and Exchange Commission (SEC) for misleading investors.
In total, FINRA contends that Fusion facilitated the sale of more than $1.8 million in NewCo Bond Offerings securities to at least 11 different investors. The broker-dealer took in significant commissions related to these transactions. FINRA argues that Fusion failed to properly investigate the bond offering to ensure that it was reasonably safe for investors.
Bond Offering Statement Allegedly Contained Material Misrepresentations
FINRA argues that the offering statement for NewCo Bond Offerings that had not been properly vetted by Fusion contained material misrepresentation and material omissions of fact. Investors were not given proper notice that the promoter of the bond had been cited by the SEC for misusing investor funds in 2017. Additionally, FINRA contends that material misrepresentations were made over the anticipated revenue of the project for which NewCo Bond Offerings was raising capital from investors.
FINRA Seeking Penalties
At this point, this is a complaint filed by FINRA. No final determination has been made in the case against the former Florida brokerage firm Fusion Analytics Securities LLC. That being said, FINRA’s Department of Enforcement is seeking all remedies deemed appropriate, including findings of violation of federal securities laws, findings of violation of FINRA rules, and disgorgement of any ill-gotten gains.
Contact Our Miami, FL Securities Fraud Attorney Today
At Carlson & Associates, P.A., our Florida investment fraud lawyer has a strong record of success getting justice and compensation for investors. If you suffered unfair investment losses because your brokerage firm made material misrepresentations, we are here to help. Call our Miami law office today to request a completely confidential, no obligation review of your FINRA case.
Sources:
finra.org/sites/default/files/fda_documents/2018059545604%20Fusion%20Analytics%20Securities%2C%20LLC%20CRD%20124245%20Order%20Accepting%20Offer%20of%20Settlement%20va%20%282022-1652055618346%29.pdf
brokercheck.finra.org/firm/summary/124245