Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, Bradley Woods & Co. Ltd. (CRD # 13660) was recently sanctioned by FINRA’s Department of Enforcement after an investigation into its failure to adequately supervise outside business activities and offerings of private placement securities.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints about Bradley Woods & Co. Ltd.
Registration Background for Bradley Woods & Co. Ltd.
Bradley Woods & Co. Ltd. has been a member of FINRA (formerly the NASD) since 1985 with its main office located in New York, NY. The firm primarily generates revenue from private placements and merger and acquisition advisory services. It has approximately three branch offices and approximately 30 registered representatives.
FINRA’s Allegations Against Bradley Woods & Co. Ltd.
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated May 14, 2021, Bradley Woods & Co. Ltd. consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between October 2015 and January 2018, [Bradley Woods & Co. Ltd.] and [Daniel Ripp] failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA’s rules concerning outside business activities (OBAs)”;
- “Between January 2017 and January 2018, [Bradley Woods & Co. Ltd.] and [Daniel Ripp] failed to establish and maintain a supervisory system, including WSPs, reasonably designed to achieve compliance with its due diligence and filing obligations for private placements, in violation of FINRA Rules 3110 and 2010”;
- “With respect to OBAs, [Bradley Woods & Co. Ltd.]’s WSPs did not require representatives to provide written notice of their OBAs to the firm”;
- “The WSPs also failed to address the requirements in Rule 3270.01 that the firm (1) review OBAs to determine whether the activity is more properly characterized as a private securities transaction (PST) and (2) keep records reflecting the review of OBAs”;
- “In addition, with respect to due diligence, although the WSPs outlined categories of information that [Bradley Woods & Co. Ltd.] should typically collect with respect to private placements, the WSPs did not state how the firm’s review of those materials should be conducted or memorialized”;
- “[Bradley Woods & Co. Ltd.] and [Daniel Ripp] also failed to evidence a reasonable due diligence review of the three private placements”;
- “Although the [Bradley Woods & Co. Ltd.] collected certain documents and information related to the offerings, Respondents did not memorialize how the due diligence was conducted nor did Respondents document their conclusions with respect to the merits of the offerings”; and
- By virtue of his it’s actions, Bradley Woods & Co. Ltd. violated FINRA Rule 3110, regarding supervision; FINRA Rule 3270, regarding outside business activities; FINRA Rule 5123, regarding private placement securities; and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA’s Sanctions
FINRA’s May 14, 2021 AWC also indicates that as a result of Bradley Woods & Co. Ltd.’s failure to adequately supervise outside business activities and offerings of private placement securities, it consented to the following sanction(s):
- A censure;
- A fine in the amount of $40,000.00; and
- A fine in the amount of $10,000.00 joint and several with Daniel Ripp.
Bradley Woods & Co. Ltd. Has No Prior History of Regulatory Actions or Customer Disputes
In addition to Bradley Woods & co. Ltd. being censured and fined for its failure to adequately supervise outside business activities and private placement securities, as described in the May 14, 2021 AWC, FINRA BrokerCheck for Bradley Woods & Co. Ltd. reveals it has no prior history of regulatory actions or customer disputes, including written complaints and/or arbitrations.
If you or someone you know has or had a brokerage account with Bradley Woods & Co. Ltd. and have concerns regarding losses in your investments, including private placements securities or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
