FINRA Expels Red River Securities

Posted on Thursday, February 16, 2017 at 9:21 AM
FINRA Expels Red River Securities

From the Desk of Jim Eccleston at Eccleston Law LLC:

Red River Securities, a Plano, Texas-based broker-dealer, has been expelled from FINRA for fraudulent sales in five oil and gas joint ventures. In addition, the firm was ordered to pay $24.6 million in restitution to its customers. Red River Securities’ CEO Brian Keith Hardwick also has been barred.

According to FINRA, for nearly 4 years, Red River Securities misrepresented and omitted material information in connection with its sales of oil and gas offerings, which were high-risk ventures. For example, Red River Securities misrepresented the amount of income distributed to investors in other joint ventures, failed to disclose material conflicts of interest, omitted information about sizable management fees, and failed to disclose Hardwick’s participation in drafting a purportedly independent geologist report. 

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