Bathgate Capital Partners LLC (nka GVC Capital LLC) based in Greenwood Village, CO, agreed to a $13,500 fine to settle FINRA charges that it acted as a placement agent in a Reg. D PIPE offering by a company whose securities were quoted on the OTCBB.  Bathgate allegedly distributed to customers via email an executive summary prepared by the issuer that:

• didn't contain any discussion on the risk associated with investing in the company; 
• failed to disclose that the company’s current auditors issued a "going concern" opinion due to its history of losses.
• failed to disclose that the company had an accumulated deficit of $85 million;
• failed to disclose that company had never made a profit, that its business was dependent on sales of a single product or product line, and that its losses totaled more than its revenues for a couple of years.

FINRA further noted that Bathgate's communications allegedly were not based on principles of fair dealing and good faith, were not fair and balanced, and did not provide a sound basis for evaluating the facts in regard to any particular security or type of security, industry or service.  In email communications with customers, the firm omitted material facts or qualifications that, in light of the context of the material presented, caused the communications to be misleading, predicted or projected performance, and made exaggerated or unwarranted claims, opinions or forecasts about the company.

This is FINRA Case #2008013353801.   [FINRA Fines & Sanctions for February]