Andrew Smith – Investor Alert – UPDATED
UPDATE 12/19/16: Houlihan Capital was censured and fined $25,000, $5,000 of which is joint and several with Andrew Smith. Smith was also suspended by FINRA for 10 Business Days. Allegedly, the firm and Smith participated in the offering of a private placement for a company seeking to raise $5 million through the sale of subordinated convertible promissory notes. FINRA alleged that the firm and Smith, acting as its president, chief compliance officer (CCO), and part owner, created and disseminated written materials that failed to comply with FINRA-required standards for communications with the public.
Galvin Legal is launching an investigation on behalf of investors who may have suffered losses investing with Andrew Smith. If you suffered losses investing with Andrew Smith, then Galvin Legal may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
Andrew Smith (CRD# 2433015)
As of December 19, 2016, Andrew Smith’s FINRA BrokerCheck Report contains the following:
Disclosure Events
0 Customer Disputes
1 Regulatory Events
10/19/2016
Initiated by FINRA
Allegations:
Without admitting or denying the findings, Smith consented to the sanctions and to the entry of findings that in the course of their participation in the offering of a private placement of securities for a company seeking to raise $5 million through the sale of subordinated convertible promissory notes, Smith, acting as his member firm’s President, Chief Compliance Officer, and part owner, and the firm created and disseminated written materials which failed to comply with FINRA-required standards for communications with the public. The findings stated that the materials failed to present a balanced view of the risks and benefits of the investment, included inaccurate or misleading statements, presented an overly positive portrayal of the issuer, failed to provide a sound basis for evaluating the facts in regard to an investment in the issuer, omitted material information, included out-of-date information, and contained false, exaggerated, unwarranted, promissory or misleading statements or claims. The findings also stated that Smith and the firm distributed information which contained what had become an untrue statement of a material fact to potential investors without providing written updated information.
Resolution: Acceptance, Waiver & Consent (AWC)
Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
Amount: $5,000
Sanctions: Suspension
Duration: 10 Business Days
0 Employment Separation After Allegations
0 Criminal Disclosures
Current and Previous Registrations
07/06/2011 – PRESENT HOULIHAN CAPITAL, LLC (CRD# 156028) CHICAGO, IL
08/08/1997 – 09/27/2011 HS & CO., INC. (CRD#:42612) CHICAGO, IL
01/30/1996 – 09/13/1996 EVEREN SECURITIES, INC. (CRD#:19616) ST. LOUIS, MO
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses investing with Andrew Smith and would like a free consultation with a securities attorney, then please call Galvin Legal at 1-800-405-5117.
Galvin Legal is a national securities arbitration, mediation, fraud, and investor protection law practice. For more information on Galvin Legal, please visit www.galvinlegal.com or call 1-800-405-5117.
