Zamansky LLC announces that it is investigating Synergy Investment Group, LLC (“Synergy”), a broker-dealer headquartered in Charlotte, North Carolina with 37 branch offices. The investigation concerns Synergy’s sales of private placements or private securities in real estate or other high yield funds. Synergy’s salesmen allegedly sold these private securities to customers without obtaining proper approval or performing adequate due diligence.
The Financial Industry Regulatory Authority (“FINRA”) recently fined Synergy $20,000 for supervisory failures regarding the unauthorized sales of private placement securities. FINRA members are required to supervise and record on their books their broker’s sales of investments outside the firm, an activity that is referred to in the industry as “selling away.”
FINRA alleged that Synergy failed to supervise its Keyport, New Jersey branch office. FINRA alleges that the Keyport branch was engaged in widespread sales of private placements despite the fact that the branch was not approved to sell any private placements. These private securities included Surety Partners, LLC, The Broyhill All-Weather Fund, LP, and Broyhill Asset Management (f/k/a Broyhill DW Capital Advisors).
This is not the first time Synergy was charged by FINRA. Previously, Synergy has been the subject of at least six disciplinary actions and investigations with fines totaling over $150,000. Synergy was also ordered to pay restitution of $148,750 to customers for due diligence failures regarding sales of the infamous MedCap private placement.
If you are a Synergy customer who was sold a private placement or other security, please contact us for an evaluation of your investment. You may contact Jake Zamansky at (212) 742-1414, or by email at firstname.lastname@example.org.