WestPark Capital Representative Sanctioned for Unauthorized Private Transactions

Posted on January 15th, 2024 at 1:24 PM
WestPark Capital Representative Sanctioned for Unauthorized Private Transactions

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has imposed a fine and suspension on Mitchell S. Morrison for engaging in private securities transactions without providing prior written notice to his affiliated firms.

Morrison agreed to the settlement pursuant to an Acceptance, Waiver, and Consent (“AWC”). Morrison served as the president and CEO of a financial technology company he co-founded while associated with WestPark Capital Inc. and Skyway Capital Markets LLC from March 2018 to December 2020. According to DI Wire, his company allegedly conducted a private offering during this period, raising $462,500 through ten transactions without notifying or obtaining approval from WestPark or Skyway.

FINRA further asserted that Morrison falsely denied involvement in such transactions in compliance questionnaires with WestPark. This conduct violates Rule 3280, requiring written notice before participating in private securities transactions, and constitutes a breach of Rule 2010, mandating high standards of commercial honor. Without admitting or denying FINRA's findings, Morrison agreed to a four-month suspension and a $5,000 fine pursuant to the AWC.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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