FINRA announced sanctions against 2 firms and 7 individuals for selling interests in private placements without conducting a reasonable investigation.  The actions resulted from FINRA's ongoing sweep of broker-dealers who sold interests in troubled private placements. 

FINRA notes:  the companies whose securities were sold in these PP's were unrelated to the B/D's and individuals sanctioned.  The companies ultimately failed, resulting in significant investor losses.

    Those Sanctioned by FINRA.   The following firms and individuals were sanctioned in connection with the PP offerings by Medical Capital Holdings, and/or Provident Royalties.

• Workman Securities Corp., of MN.   Ordered to pay $700K in restitution.
• Workman Former President Robert Vollbrecht.    Barred as a principal and fined $10K.
• Timothy Cullum, Steven Burks, formerly with Cullum & Burks Securities of TX.  Both individuals, who served as CEO and President, respectively, of the now-defunct firm were each got a 6-month suspension as principal and were fined $10K.
• Jeffrey Lindsey, Bradley Wells, formerly with Capital Financial Services of ND.   Both individuals, former executives of the firm, each got 6-month suspensions as principal and was fined $10K.
• Jay Lynn Thacker, formerly with Meadowbrook Securities of MS.   The Chief Compliance Officer of the firm, fka Investlinc Securities, LLC, got a 6-month suspension as principal and was fined $10,000.
• David William Dube, formerly of Peak Securities Corporation, of FL.  The owner, President, Chief Compliance Officer and AML Compliance Officer of this now-defunct firm was barred for failing to conduct adequate due diligence, as well as for failing as AML Compliance Officer to detect, investigate and report numerous suspicious transactions in 10 customer accounts where "red flags" existed.

Additionally, Askar Corporation of MN.    This firm was fined $45K for failing to conduct due diligence on a private placement from DBSI, Inc., another company that defaulted on its obligations.  Askar allegedly only reviewed the offering documents and sales materials provided by DBSI bfore approving the product for sale, without independently verifying DBSI's representations in the offering documents.

For further details, go to:   [FINRA News Release, 4/7, FINRA Sanctions Two Firms and Seven Individuals.."]