Wedbush Securities
Wedbush Securities was founded in 1955 and remains a privately owned company. It is primarily a West Coast firm, with headquarters on Wilshire Boulevard in Los Angeles, California, and 23 branches in Pacific coast states, Arizona, Colorado, and Nevada, plus Boston and New York. The firm has four main divisions and is apparently adding a fifth. Wedbush Securities provides traditional brokerage, research, and advisory services through over 150 brokers. The investment banking division advises companies on capital formation, including debt financing and public offerings.
Wedbush Capital is a private equity subsidiary that focuses on large positions, recapitalizations, and management buyouts. Wedbush’s clearing unit provides custody, trading, and back office operations for over 100 “introducing” brokerage firms and others, including hedge funds. E Investment Bank is an online brokerage service for its clients.
Additional Information: Wedbush Securities Fined in Late Trading Scandal
The NASD censured and fined Wedbush Securities $150,000 for inadequate systems and procedures to detect and prevent late trading in mutual funds and for inaccurately recording entry times for customer orders. Late trading refers to the practice of placing orders to buy or sell mutual fund shares after the 4 p.m. ET market close, at the net asset value established when the market closes. Late trading allows traders to profit from market-moving events which occur after the close of the market which are not reflected in that day’s closing share price.
Wedbush Securites Sanctioned for Failing to Supervise Broker
Wedbush Securities, Inc. was sanctioned for failing to supervise a broker who was committing sales violations. A Wedbush broker was investigated, sanctioned, fined and suspended. The NASD found that the broker exercised control of a customer’s account and made excessive trades, known as “churning.” The NASD also found that Wedbush failed to enforce the firm’s written supervisory procedures, which are designed to prevent such violations.
If you suffered investment losses, please contact us or communicate with a Dimond Kaplan & Rothstein, P.A. attorney at 888-578-6255 or jkaplan@dkrpa.com for a free case evaluation.
