Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, CIM Securities, LLC (CRD # 120852) was recently sanctioned by FINRA’s Department of Enforcement after an investigation into its failure to supervise private placement securities offerings.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding CIM Securities, LLC.
Registration Background for CIM Securities, LLC
CIM Securities, LLC has been a member firm of FINRA since 2002. It is headquartered in Centennial, CO. It has 11 registered representatives and two branch offices. It conducts a business primarily of private placements and retail brokerage.
FINRA’s Allegations Against CIM Securities, LLC
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 31, 2022 (No. 2019060957101), CIM Securities, LLC consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between September 1, 2018, and February 23, 2020, Respondent sold investments to approximately 46 customers in three high-risk private placement offerings that were suitable only for investors who did not require liquidity from the investment and could bear the risk of a total loss“;
- “Between September 1, 2018, and February 23, 2020, CIM Securities failed to establish, maintain, and enforce written procedures (WSPs) reasonably designed to achieve compliance with FINRA Rules 2111 and 4512(a)(1)(D)”;
- “Respondent failed to obtain required suitability information for customers investing in three private placement offerings and failed to document principal acceptance of customer accounts opened to invest in those offerings”;
- “Between September 1, 2018, and February 23, 2020, CIM Securities also failed to establish a reasonable supervisory system for email review, including WSPs”; and
- By virtue of its actions, CIM Securities, LLC violated FINRA Rule 2111 regarding suitability, FINRA Rule 4512(a)(1)(D) regarding customer account information, FINRA Rule 3110 regarding supervision and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions CIM Securities, LLC
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s January 31, 2022 AWC also indicates that CIM Securities, LLC consented to the following sanction(s):
- A censure; and
- A fine in the amount of $35,000.00.
CIM Securities, LLC Has A History of Securities Industry Regulatory Actions
In addition to CIM Securities, LLC being sanctioned by FINRA after an investigation into its failure to supervise private placement securities offerings, FINRA BrokerCheck for CIM Securities, LLC reveals it has a prior history of regulatory actions against it, including but not necessarily limited to the following:
- On July 30, 2020, CIM Securities, LLC entered into FINRA Letter of Acceptance Waiver and Consent (No. 2017056738101), in which it consented to without admitting or denying findings that it failed to establish and maintain a supervisory system or WSPs reasonably designed to comply with its obligations under federal securities laws in connection with private placements. It was censured and fined $30,000.00 and ordered to certify that it has established and implemented policies, procedures and internal controls reasonably designed to address and remediate the issues identified.
- On October 3, 2018, CIM Securities, LLC entered into FINRA Letter of Acceptance Waiver and Consent (No. 2017052070001), in which it consented to, without admitting or denying findings that it failed to comply with its obligation to review, approve, document and supervise approximately $2.5 million in private securities transactions. It was censured and fined $15,000.00.
If you or someone you know has or had a brokerage account with CIM Securities, LLC and have concerns regarding losses in your investments 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.