WFP Securities, a San Diego-based broker-dealer, has informed the Financial Industry Regulatory Authority that it is closing. WFP has 40 brokers and $14 million in legal claims against it for investing $27 million in Medical Capital Holdings and Provident Royalties LLC.
The announcement comes on the heels of news that Ameriprise Financial filed an 8-K statement with the SEC on April 21 announcing thatit would pay $150 million to settle arbitration and lawsuit claims against its independent broker-dealer subsidiary, Securities America,over the sale of certain private placement notes from Medical Capital Holdings and Provident Royalties LLC.
In late April, boutique broker-dealer Omni Brokerage Inc. filed notice with FINRA that it intended to cease business operations as a registered firm. According to SEC filings, the South Jordan, Utah-based Omni was the subject of numerous arbitration cases for its involvement with DBSI Inc., a commercial real estate investment company based in Idaho that sold Tenants in Common(TICs) investments.