The Pennsylvania Department of Banking and Securities this week slammed Newbridge Securities Corp. with a $499,000 fine for failing to supervise a broker in connection with sales of structured products to his clients in the state.
"From in or about January 2012 until December 2016, Newbridge did not maintain a reasonable system for applying and enforcing written procedures pertaining to their sales of structured products by one agent in Pennsylvania to certain of his clients who were residents of Pennsylvania,"
according to the order, which was released on Tuesday.
The order does not name the broker or give any details about the dollar amount of securities sold or the number of clients affected. It also does not give details about the type of investment product in question.
Tom Casolaro, CEO of
Newbridge Securities, did not return a call on Thursday afternoon to comment. The firm agreed to the consent order without admitting or denying its allegations.
A midsize firm,
Newbridge reported $26.17 million of total revenue in 2016 and a net loss of nearly $488,000.
According to its BrokerCheck report, Newbridge Securities got its registration approved by the Securities and Exchange Commission and NASD, the forerunner to the Financial Industry Regulatory Authority Inc., in 2000. Since then, Newbridge has reported 33 "disclosure events," or roughly two per year, since it opened for business.
