FINRA recently announced that Wadsworth Investment Co., Inc. and William Frederick Wadsworth of Wallingford, Connecticut have been fined $100,000 and required to hire an independent consultant to review its policies, systems, procedures (written and otherwise) and trailing related to its violations of federal securities laws, FINRA and MSRB Rules, and implement the consultant’s recommendations. William Frederick Wadsworth has also been suspended from association with any FINRA member in any capacity for one month and suspended from association with any FINRA member in any principal capacity for one year.
Without admitting or denying the allegations, Wadsworth Investment Co., Inc. (and Wadsworth individually) consented to the entry of findings that they permitted an individual to act as an unregistered principal and permitted individuals to be registered as General Securities Representatives through the firm without being active in the firm’s securities business. The findings further stated that Wadsworth Investment Co. sent written communications to customers and prospective customers containing language that failed to provide a sound basis for evaluating the claims within the communications, and that omitted material information and/or contained unwarranted statements. The findings also stated that the firm, acting through Wadsworth, failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to achieve compliance with applicable securities laws and regulations. Finally, FINRA also found that Wadsworth Investment Co. failed to obtain required information on new account forms, and on mutual fund and variable annuity applications.
If you have questions about investments you made with Wadsworth Investment Co., or if you believe that you have been the victim of a securities fraud, the Law Offices of David A. Carter, P.A. may be able to help. The Law Offices of David A. Carter, P.A. is a South Florida securities fraud, securities arbitration, investor protection, and Chapter 7 bankruptcy law firm based in Boca Raton. David Carter is a securities attorney that reviews securities fraud cases throughout the country and Florida, including securities fraud cases in Delray Beach, Vero Beach, Jupiter, Wellington, Stuart, Melbourne, Boynton Beach, and Lighthouse Point. To contact the Law Offices of David A. Carter, P.A., please call 561-750-6999, or email us at contact@carterpa.com. For more information about the Law Offices of David A. Carter, P.A., you can also visit our website at www.carterpa.com.