Securities Arbitration Lawyers BlogFINRA Cancels Global Arena Capital’s License
Cancellation is a direct result of alleged failure to pay fees
Global Arena Capital, a New York firm founded in 1985, was stripped of its license by FINRA on July 20. The license cancellation resulted from the firm’s failure to pay outstanding fees of nearly $50,000 to FINRA, but its previous disclosures in the past several years, specifically in dealing with senior investors, may have negatively impacted the firm’s ultimate fate.
The firm’s bad blood with senior investors was first revealed in July 2014, when a complaint was filed because representatives of the firm allegedly deceived and misled a senior investor by falsely promising high rates of return on a risky investment that they represented as a safe investment. According to FINRA, the bonds the representatives sold the investor were “junk bonds,” which are known to be particularly high risk.