Spencer Edwards Allegedly Sold $400K of Convertible Notes of a Non-public Company to its Customers via a Private Placement Offering
Spencer Edwards, Inc. allegedly sold over $400,000 of convertible notes of a non-public company to its customers between September 2013 and August 2014 via a private placement offering conducted by Spencer Edwards, according to a Complaint filed by FINRA’s Department of Enforcement under review by investor rights attorney Alan Rosca.
Said private placement offering was allegedly conducted for Digi Outdoor Media, Inc., FINRA reports.
Spencer Edwards also allegedly initiated discussions with the Issuer about doing the offering in August 2013, and, through certain of its registered representatives, purportedly recommended the purchase of said notes without the requisite due diligence and without reasonable grounds to believe the offering was suitable for any customer, FINRA states.
FINRA further states that, had Spencer Edwards performed adequate due diligence, it would have purportedly discovered that representations made by said issuer regarding leases necessary for its business operations were not valid.
Alan Rosca, of theRosca Scarlato LLC law firm, is investigating activity related to Spencer Edwards, Inc.’s alleged private placement offering. Investors who believe they may have lost money in activity related to Spencer Edwards, Inc.’s alleged private placement offering are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Spencer Edwards Censured, Suspended, & Fined $495K
Spencer Edwards, Inc. also allegedly failed to discover that officers of the Issuer had been sued for securities fraud by investors in connection with a predecessor of the Issuer and that liens had been filed potentially impacting the Issuer’s assets, according to the aforementioned FINRA Complaint.
Spencer Edwards, Inc., based on the aforementioned alleged behavior, has been censured, suspended, and fined $495,000 by FINRA, and ordered to offer rescission to the affected customers, according to the Extended Hearing Panel Decision.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Spencer Edwards, Inc.’s alleged private placement offering. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Spencer Edwards, Inc.’s alleged private placement offering may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.