CSSC Brokerage Services, Inc. Suspended by FINRA
19 February 2019
An Office of Hearing Officers (OHO) decision became final in which the firm was fined $120,000, suspended from participating in private securities offerings in all capacities for one year and ordered to pay $130,000, plus interest, jointly and severally, in restitution to customers. The sanctions were based on findings that the firm willfully violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and violated FINRA Rule 2020 by defrauding investors by offering and selling securities through a bridge loan offering designed to keep its floundering parent company afloat after more than three years of failed deals, significant business losses and mounting debts that the parent company could not pay.
