Chicago firm fined, censured by FINRA over unregistered principal

On Behalf of | Aug 16, 2021 | FINRA Compliance

The Chicago brokerage firm of Dough LLC has signed a letter of Acceptance, Waiver, and Consent (AWC) with FINRA concerning alleged violations of the regulatory body’s rules.

FINRA said that from July 2019 to June 7, 2021, Dough LLC allowed an individual to operate as a principal despite the firm knowing that the person was not registered as a principal. FINRA stated that this was a violation of Rules 1220 and 2010, which require every principal in the investment banking or securities business of a member to be registered in the category appropriate to their function.

Dough LLC submitted the AWC in response to the allegation. Without admitting or denying the findings, the company has consented to sanctions of a censure and a $10,000 fine.

In the AWC, FINRA said the unregistered person was functioning as a principal with Dough’s knowledge, “by, among other things, identifying as the firm’s chief executive officer, being involved in decisions regarding the employment status and compensation of the firm’s employees, and actively engaging in parts of the firm’s securities business.” FINRA said it became aware of this matter through a regulatory tip.

A FINRA member since 2009, Dough LLC provides retail brokerage services to investors. If the AWC is accepted, it will become part of the company’s permanent disciplinary record.

Lewitas Hyman represents financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations. Contact us by phone at (312) 291-4600 or through our online contact form for a free consultation.

Share This