Provident Royalties Sales Claim Another B-D
Private placements in Provident Royalties have caused the demise of yet another broker/dealer. Florida-based Boogie Investment Group joins some 20 other broker/dealers that have either shut down or intend to because of legal costs related to soured Provident deals.
In July 2009, the Securities and Exchange Commission (SEC) charged Provident Royalties with fraud. The company raised $485 million from 7,700 investors between 2006 and 2009.
Joseph Blimline, one of Provident’s owners, pleaded guilty to fraud earlier this summer.
Another doomed private placement, Medical Capital Holdings, faces similar issues. The SEC also charged Medical Capital with fraud in 2009.
Among the B-Ds that have closed shop or plan to over mounting legal bills from either Provident or Medical Capital Holdings sales: GunnAllen Financial, Empire Financial Group, CapWest Securities, Okoboji Financial Services, WFP Securities Corp., QA3 Financial Corp., Jesup & Lamont Securities Corp. and Workman Securities Corp.