FINRA v. Independence Capital Co., Inc.

Independence Capital Co., Inc. and Dennis Clarence Twarogowski failed to reasonably supervise firm registered representatives' recommendations of bonds that were speculative, involved a high degree of risk, were illiquid, and were only suitable for persons with substantial financial resources and with no need for liquidity, according to FINRA. The firm and Twarogowski failed to reasonably supervise the representatives who together recommended that nine retail customers, four of whom were seniors, make a total of $443,000 of investments in the speculative bonds, according to FINRA. In approving each of the sales to the customers, the firm and Twarogowski failed to perform a reasonable assessment of whether the recommendations were consistent with the customers' investment profiles, particularly in light of the concentration levels, according to FINRA. In addition, the firm failed to establish and maintain written policies and procedures reasonably designed to achieve compliance with Rule 15l-1(a)(1) under the Securities Exchange Act of 1934 (Reg BI), according to FINRA. As a result of its conduct, the firm willfully violated Reg BI, according to FINRA.

Summary generated from official Financial Industry Regulatory Authority press release