Grim Assessment of Newbridge Securities Corporation’s Financial Health

Posted on May 24th, 2019 at 3:29 PM
Grim Assessment of Newbridge Securities Corporation’s Financial Health

From the Desk of Jim Eccleston at Eccleston Law LLC:

The future of Newbridge Securities Corporation, a Boca Raton-based broker-dealer with a history of compliance issues, is in serious doubt.

According to a recent InvestmentNews article, Newbridge has potential future losses around $4.1 million, arising from investor arbitration claims against the firm. Newbridge has at most $627,000 to resolve such claims, according to its audited financial statement.

The firm’s auditor, an accounting firm Liggett & Webb, painted a dark picture of Newbridge’s financial future. “The Company has a large accumulated deficit and negative cash flows from operations,” Liggett & Web wrote in a letter on March 6, 2019 to the firm’s board.

According to the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck database, Newbridge first became registered in 2000. Since then, the firm has been subject to thirty two disclosure events, including twenty eight regulatory events and four arbitrations. Frequent disclosure events made by a brokerage firm has long been seen in the industry as a giant red flag.

According to FINRA’s notice, dated May 2, 2019, as part of FINRA’s ongoing initiatives to protect investors from misconduct, the regulatory authority is keeping a close eye on designated member firms that cross specified numeric disclosure-event thresholds.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, newbridge securities, liggett & webb, finra, brokercheck

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