03 Mar Colorado Financial Service Fined for Failing to Properly Vet Private Placements, REITs It Sold to Customers
Colorado Financial Service Corporation (CFSC) was sanctioned by securities regulators after regulators accused CFSC of failing to conduct due diligence concerning private placements and non-traded real estate income trusts (REITs).
CFSC agreed to pay a $10,000 fine levied against it by the Financial Industry Regulatory Authority (FINRA).
CFSC failed to establish, maintain, and enforce adequate systems and procedures to conduct due diligence into private placements and non-traded REITs, according to facts alleged by FINRA. CFSC’s written supervisory procedures did not describe the steps to be taken or the records to be created to ensure the firm met its due diligence obligations, according to FINRA.
CFSC did not deny or admit FINRA’s factual findings when it entered into an agreement with FINRA to settle the alleged rule violations.
The Peiffer Wolf securities attorneys often represent investors who lose money invested in non-traded REITs or private placements, as a result of inadequate due diligence by the securities broker-dealers who recommend such investments to their customers.
Attorneys Jason Kane and Joe Peiffer are currently investigating the possibility of assisting more investors in non-traded REITs and questionable private placements with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.