The Financial Industry Regulatory Authority on Tuesday fined eight brokerages and 10 individuals, and ordered $3.2 million in restitution for selling private placements that ultimately failed.
The Wall Street self-regulatory watchdog found that the brokerages did not have “adequate supervisory systems in place to identify and understand” the risks of the private placement offerings, according to a statement.
Brokerages named include NEXT Financial Group Inc in Houston, Texas; Investors Capital Corp of Lynnfield, Massachusetts; and Securities America in La Vista, Nevada.