AWC/2007007256801
Acting through Orr, the Firm participated in private placements that were contingent upon receiving a minimum and/or a maximum of investor funds and during the offering periods, the firm failed to transmit investor funds to a bank that had agreed, in writing, to hold such funds in escrow for the investors until the offering contingency was met but, instead, investor funds were held in an account over which Orr had control as escrow agent. As a result of the firm’s control over the funds held in connection with the private placements, it was deemed to be in control of customer funds, which resulted in an increase in its net capital requirement, but the firm was found to be deficient in its net capital while conducting a securities business.
On the firm’s behalf, Orr failed to maintain a Cash/Checks Received and Forwarded Blotter, or an equivalent record to reflect the receipt and/or forwarding of funds as required by SEC Rule 17a-3. The Firm did not have an adequate email retention system and therefore failed to adequately preserve emails as required. The Firm failed to establish and maintain a supervisory system reasonably designed to ensure compliance with applicable laws, rules and regulations in connection with the private placements conducted by the firm, and the firm failed to retain a written record of the dates upon which reviews and branch office inspections were conducted.
G.C. Andersen Partners Capital, LLC: Censured; Fined $65,000
Bruce Neal Orr (Principal): Censured: Fined $15,00
- 529 College Savings Plan
- AML
- Annual Compliance Certification
- Annuity
- ATM
- Away Accounts
- Bank
- Blank Forms
- Borrowing
- Broadcast
- Changes Of Address
- Checks
- CIP
- Class B Shares
- Clearing Agreement
- Communications
- Cooperation Agreement
- Corporate Credit Card
- Debit Card
- Deceased
- Disabled
- Discretion
- Elderly
- Electronic Communications
- Escrow
- Expenses
- False Professional Designation
- False Statements
- FOCUS
- Forgery
- Gifts
- Guaranteeing Against Losses
- Heightened Supervision
- Inaccurate Information To FINRA
- Increase The Number Of RRs
- Instant Messaging
- Internet
- Joint Account
- JWillfully
- Markdowns
- Markups
- Membership Agreement
- Minimum Contingency
- Mispricing
- MSRB
- Mutual Funds
- NAC
- Net Capital
- No Objections Letter
- NSF
- Orders
- OTR
- Ownership Change
- Parking
- Personal Bank Records
- Pre-arranged Trading
- Private Placement
- Private Securities Transaction
- Qualified Independent Underwriter
- Registration Of Supervisors
- Reg T
- REIT
- Retirement
- Rule 1017
- SAR
- Scripts
- Service Fee
- Sharing Commissions
- Shelf Offering
- Signature
- SIPC
- Solicited
- Statutory Underwriters
- Suitability
- Supervision
- Supervisory System
- Surrender Charge
- Surrender Charges
- Telemarketing
- Time And Price Discretion
- Timely Amend
- UIT
- Unregistered Branch Offices
- Unregistered Person
- Unregistered Principal
- Unregistered RRs
- Unregistered Securities
- Variable Annuity
- Web Sites
- Willfully
- Written Communications
- WSPs