Source Capital Group: Information for Investors

Source-Capital-Group--Information-for-Investors
Source Capital Group (CRD#: 36719) is a brokerage firm that was established in the state of Delaware in 1994. At this time this article has been written (January 2018), Source Capital Group no longer has an active securities registration in any U.S. jurisdiction. The brokerage firm has been suspended by securities industry regulators for its failure to comply with the terms of a FINRA Arbitration award.

In this post, our securities fraud attorneys provide the details regarding that sanction as well as the five other most recent disclosures involving the company. All information included on this page has been sourced directly from FINRA. To get the full details of any disclosure about his firm, please refer to the official Source Capital Group BrokerCheck Report.

 

Source Capital Group: FINRA Disclosures

 

Disclosure # 1

Date: 04/10/2017

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Respondent Source Capital Group, Inc. failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”

Sanction Details: “Pursuant to Article VI, Section 3 of FINRA by-laws, and FINRA Rule 9554, respondent Source Capital Group, Inc.’s FINRA membership is suspended on April 10, 2017 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”

 

Disclosure # 2

Date: 05/05/2015

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it sold corporate bonds to customers and failed to sell such bonds at a price that was fair, taking into consideration all relevant circumstances, including market conditions with respect to each bond at the time of the transaction, the expense involved and that the firm was entitled to a profit.”

Sanction Details: “The firm was censured, fined $5,000 and ordered to pay restitution in the amount of $1,524.97, plus interest, to the customers.”

 

Disclosure # 3

Date: 07/14/2014

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings the firm consented to the sanctions and to the entry of findings that the firm, through its branch office manager, sold or caused the sale of investments of an entity without adequately disclosing material information to investors.”

Sanction Details: “Monetary/Fine $100,000.00. Without admitting to or denying the findings, the firm consented to the sanctions and entry of findings that the firm sold or caused the sale of investments without adequately disclosing material information.”

 

Disclosure # 4

Date: 12/16/2011

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Failed to record the correct time of trade execution for transactions in trade reporting and compliance engine (trace)-eligible securities, which resulted in: the firm failed to report to trace transactions in trace- eligible securities within 15 minutes of the execution time; the firm failed to report to trace the correct time of trade execution for transactions in trace-eligible securities; and the firm failed to show the correct time of execution on the memorandum of brokerage orders.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings; therefore, the firm is censured and fined $12,500.”

 

Disclosure # 5

Date: 06/26/2008

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Source Capital Group, Inc. failed to report to trace transactions in trace-eligible securities executed on a business day during trace system hours within 15 minutes of the time of execution. The firm failed to report to trace the lower of yield to call or yield to maturity for transactions in trace-eligible securities.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings; therefore, the firm is censured and fined $7,500.”

 

Disclosure # 6

Date: 04/28/2008

Reporting Source: Regulator

Initiated By: Connecticut

Allegations: “As a precondition to registering Donatas Belys Vildzius (CRD number 2202883) as an agent of the firm, the commissioner entered a consent order conditioning registration as an agent (no. co-06-7298-s); 2) the August 29, 2006 consent order, to which the firm was a signatory, obligated Source Capital Group, Inc. to file quarterly reports with the department for two years concerning any complaints, actions or proceedings involving Vildzius; and 3) Source Capital Group, Inc. violated the August 29, 2006 consent order by failing to abide by the quarterly reporting requirement.”

Sanction Details: “Monetary/Fine $2,500.00”

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