H.C. Wainwright & Co.

Kurta Law is investigating recommendations from H.C. Wainwright & Co. (CRD#: 375) brokers. The firm has faced a $1.5 million fine by FINRA and other regulatory actions in the past. H.C. Wainwright & Co. is a broker-dealer based in New York, New York.

H.C. Wainwright & Co. has operated under the following names:

• H. C. Wainwright & Co.
• H.C. Wainwright & Co., Inc
• Wainwright H C & Co Inc
• Rodman & Renshaw

Fees and Conflicts of Interest

In its Customer Relationship Summary (Form CRS), H.C. Wainwright & Co. discloses the following fees and conflicts of interest:

• H.C. Wainwright & Co. may be compensated by the issuers of offerings the firm recommends to you. Because fees and expenses are paid by the issuer, these may reduce your return on an investment in the offering. This compensation and conflicts of interest will be disclosed in the offering documents.
• You may also indirectly pay other fees and costs depending on the offering.

Broker-Dealer Services

H.C. Wainwright & Co. does not keep customer accounts or hold funds for clients. The firm solicits investors on behalf of securities issuers. According to its website, these investments include at-the-market stock offerings or private placements.

Investors should keep in mind that private placements aren’t subject to the same disclosure requirements as public securities offerings, and may come with hidden risks.

Regulatory Actions

Kurta Law wants investors to know about H.C. Wainwright & Co.’s history of regulatory actions, including a $1.5 million fine by FINRA. You can read the firm’s full regulatory history on its detailed BrokerCheck page.

Alleged Violation of Securities Exchange Act

On November 14, 2023, H.C. Wainwright & Co. consented to the entry of findings that it allegedly violated Section 15(c) of the Securities Exchange Act of 1934 by making capital withdrawals while in net capital deficiency.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that, from December 2020 through March 2022, the firm served as a guarantor on loans taken out by its parent company. These loans were allegedly related to an employee stock ownership transaction.

However, H.C. Wainwright & Co. allegedly failed to take into account the outstanding amount of these loans when calculating its net capital position, resulting in net capital deficiency for 14 of the 16 months it served as guarantor.

The firm consented to a censure by FINRA and a $200,000 fine. You can read the full AWC here.

Alleged Failure to Supervise

In an AWC filed on September 23, 2022, H.C. Wainwright & Co. consented to the entry of findings that it allegedly failed to reasonably supervise and retain its employees’ business-related text communications between September 2017 and September 2020.

The AWC alleged that at least 24 employees off the firm used text messages for securities business communications on their personal cell phones. The firm allegedly did not preserve these communications at the time of their exchange, which allegedly prevented FINRA from conducting full investigations in two instances.

The firm consented to a censure, a $1.5 million fine, and to certify that it had revised its supervisory systems to comply with securities regulations. You can access the AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of one broker formerly associated with H.C. Wainwright & Co. with allegations of misconduct on his record. Contact a securities attorney if you have concerns about your broker’s conduct.

• John Chambers: https://www.kurtalawfirm.com/blog/john-chambers/ 

Kurta Law Can Help

Investors who lost money working with a H.C. Wainwright & Co. broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.