A Registered Principal in Bloomington, MN, issued misleading, unsound, unbalanced Internet ads, Website postings and other public communications, leading FINRA to bar the individual.  FINRA charged that his communications with the public were:  (i) misleading;  (ii) didn't supply fair and balanced risk-reward analysis;  or, (iii) failed to give a sound basis for evaluating information.  FINRA further alleged that Principal Elverud failed to approve or maintain records of public communications his firm issued.

    Further Allegations of Communications Violations.  Elverud wrote a newsletter that the broker-dealer distributed, re: a company whose securities the firm marketed.  Letter was misleading, as it was unduly and excessively positive, and failed to disclose material facts concerning financial difficulties. 

The Principal made misrepresentations to investors through letters he wrote on firm letterhead, about the securities the company issued - e.g., letters misrepresented the individual offers being made as a general reinvestment option so as to keep investors from redeeming their holdings in the company’s securities. Elverud further caused his firm’s books and records to be inaccurate - re: supervisory and compliance procedures for personnel holding.  Finally, Elverud caused his firm to conduct a securities business while it was in violation of its net capital requirements.

This is FINRA Case #2008013429301.   [Disc. Actions for February]