Greenbird Capital has been fined $50,000 and censured by the Financial Industry Regulatory Authority (FINRA) for supervisory failures, it was revealed this week.
Greenbird Capital Given a $50k Fine by FINRA
According to FINRA, the fine is related to private placement solicitations and telemarketing practices between May 2021 and December 2023.
The Florida-based brokerage reportedly failed to establish, maintain and enforce adequate supervisory systems and written procedures to ensure compliance with securities laws and telemarketing rules.
The firm was found to have violated FINRA Rules 3110, 3230(d), and 2010.
During the period in question, Greenbird raised approximately $24 million across 14 private placements under the Regulation D Rule 506(b) exemption.
However, FINRA found the firm lacked systems to ensure its representatives had pre-existing, substantive relationships with prospective investors, raising the risk of prohibited general solicitations.
Additionally, FINRA cited the firm’s failure to properly supervise outbound calls to potential investors.
Greenbird had no system in place to check numbers against the national do-not-call registry and failed to ensure that calls occurred within permitted hours, according to FINRA in its letter of acceptance, waiver and consent.
The firm has since revised its supervisory procedures, introduced pre-existing relationship forms, and ceased cold calling.
Greenbird neither admitted nor denied the findings but accepted the sanctions to resolve the matter. The fine must be paid in full once the agreement takes effect.
