World Equity Group Is Charged for Failing to Supervise Sales of Risky Investments

Posted on February 27th, 2015 at 12:42 PM

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA has accused World Equity Group, an Illinois based brokerage firm, of failing to supervise the sale of non-traditional Exchange Traded Funds (ETFs), failing to properly document due diligence performed on private placements.

ETFs are used to track the performance of an index, and replicate the market’s performance. Those investments are typically unsuitable for retail investors who hold them for long term period in a volatile market. So firms must have strict supervisory standards in place to track the sales of ETFs. FINRA alleged that World Equity Group did not have adequate supervisory standards in place.

Private placements are private offering securities that are mostly invested by a small number of chosen investors. World Group was accused of not doing their due diligence for those vehicles as well, and not supervising properly.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: FINRA, World Equity Group, ETFs

Return to Archive



I have the best legal firm in the country to defend me. Awesome job!

Cindy C.


October 15, 2021
FINRA Bars Former LPL Advisor Who Allegedly Misappropriated Elderly Client’s Funds

The Financial Industry Regulatory Authority (FINRA) has barred a former LPL advisor who allegedly misappropriated a senior client’s funds and subsequently failed to cooperate in FINRA’s investigation.

October 14, 2021
NASAA Targets Unpaid Arbitration Awards With Proposed New Model Rules

The North American Securities Administrators Association (NASAA) has proposed new rules in an attempt to reduce the large number of arbitration awards that go unpaid to investors who prevail as claimants in arbitration proceedings.

October 13, 2021
SEC Freezes Assets and Halts Alleged Fraudulent Scheme By Ron Harrison

The Securities and Exchange Commission (SEC) has obtained an emergency court order freezing the assets of Ron Harrison, who allegedly operated an ongoing fraudulent scheme.