Blackbook Capital LLC Fined $50,000 by FINRA

Firm Allegedly Listed Commissions as “Miscellaneous” or “Additional Fees”

BlackBook Capital, LLC, with headquarters on Wall Street in New York City, has been sanctioned by FINRA for allegedly mischaracterizing and understating commissions charged to its investors, among other charges.

According to the FINRA disclosure, the firm –without admitting or denying the findings – consented to the sanctions and the entry of findings that it charged its customers $60.50 on separate transactions in addition to or in place of a designated commission charge. The charges were allegedly listed as “miscellaneous” or “additional fee,” however a large portion of the charge could not be contributed to a cost or expense incurred by the firm. In short, it was a minimum commission charge.

In addition to the mischaracterization of commission charges, the findings state that the firm also failed to check their customer base for the names of persons and entities on the Financial Crimes Enforcement’s Network (FINCEN) lists, as required by FINRA.

As part of the Bank Secrecy Act, FINRA requires financial institutions, including broker-dealers, to develop and implement Anti-Money Laundering (AML) compliance programs and test for compliance. In this area, the firm’s 2010 AML test was found to be faulty, as it was not independent and not adequate, having been performed by a non-qualified individual.

Finally, the report indicates that the firm also failed to preserve hundreds of business-related emails in an appropriate, non-rewritable, non-erasable format. Again, the firm did not follow designated guidelines.

As a result of these findings, BlackBook Capital, LLC was fined $50,000.00 and is required to comply with undertakings and revise the firm’s written supervisory procedures.

Investors who feel that their broker or brokerage firm has acted inappropriately and have incurred a financial loss have rights. A knowledgeable securities attorney may be able to help recover financial losses incurred due to such behavior. The key is in selecting an experienced securities attorney well versed in securities arbitration, and one with a strong track record in successfully recovering client losses.

The attorneys at Silver Law Group represent investors nationwide and are committed to helping investors recover investment losses through stockbroker misconduct. Our consultations are free and the firm is compensated only when we are successful in recovery. Contact us today to discuss your rights as an investor in greater detail.