December 29 , 2015
Paul J. Savage entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Finance 500, Inc. as head of the office of supervisory jurisdiction supervisor for the Florida branch office, he failed to carry out his duties in each of the supervisory roles he held with the firm.
Finance 500 filed a Uniform Termination Notice permitting Savage to resign in October 2014, stating the to be “in connection with branch supervision, supervision of Firm trading activities and account due diligence.”
According to FINRA, the Florida branch focused almost exclusively on trading penny stocks as a market maker for both the Firm’s proprietary trading accounts and for its retail customers. By focusing on penny stock trading, the Florida branch dealt in a segment ofthe market susceptible to fraudulent activity. Despite the risks, Savage did not mitigate the risks associated with this business model.
AWC No. 2013036837802
Savage was fined $10,000 and suspended from association with any FINRA member in any capacity for six months.
Finance 500 is headquartered in Irvine, CA. They have been a FINRA registered broker dealer since 1982 and have about 29 registered individuals in five branch offices.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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