On August 26, FINRA accepted a Letter of Acceptance, Waiver, and Consent (AWC) from a former funding portal member (the respondent) that acted as an intermediary for crowdfunding offerings conducted under Section 4(a)(6) of the Securities Act. The AWC outlined the respondent’s alleged violation of FINRA Funding Portal Rules 800(a) and 200(a) and FINRA Rule 8210. It asserted that FINRA began investigating one of the respondent’s offerings in January 2023 and, while the respondent initially cooperated with the investigation, the respondent subsequently “fail[ed] to respond to requests for documents and information,” despite multiple requests.
To resolve FINRA’s allegations, the respondent consented to an expulsion from FINRA funding portal membership, effective upon approval of the AWC, and acknowledged that the AWC will become part of its permanent disciplinary record. Respondent did not admit nor deny FINRA’s claims.
