Current Investigations

CMD Investigating Claims Against First American Securities, Inc. for Unsuitable Recommendations of Private Placements

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against First American Securities, Inc. for recommending unsuitable private placements, failure to supervise, inadequate due diligence, and investor offering documents (PPM) that contained misleading and unwarranted statements, omissions of material information and material misrepresentations.

According to FINRA, First American Securities, Inc. was censured, fined $150,000, and ordered to disgorge commissions of $190,000, plus interest in connection with private placements.  In addition, according to FINRA, First American Securities, Inc. failed to follow its written supervisory procedures (WSPs) relating to due diligence requirements for private placements.  As well as supervisory deficiencies and inadequate due diligence which caused the firm to lack a reasonable basis to recommend one of the offerings to customers. First American Securities, Inc. distributed offering documents to investors which negligently made untrue statements of material facts or omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and made statements which were not fair and balanced, and were misleading, exaggerated and unwarranted.

In order to invest in a private placement, the investor must be an accredited investor.  For a person to to be an accredited investor, the investor must be any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000.

If you or someone you know lost money investing in private placements with First American Securities, Inc. or was not an accredited investor at the time of the private placement, you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

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