Dalmore Group LLC has agreed to pay a $375,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2019 to December 2022, Dalmore failed to establish and maintain a system of oversight, including written oversight procedures, reasonably designed to achieve compliance with the suitability and best interest obligations in connection with the sale of private placements , in violation of Rule 15l-1 (a)(1) under the Securities Exchange Act of 1934 (Regulation Best Interest or Reg BI) and FINRA Rules 3110 and 2010.
During the same period, Dalmore failed to establish and maintain a reasonable system of oversight to prevent the misuse of material non-public information, in violation of FINRA Rules 3110 and 2010.
Since January 2019 to date, Dalmore has not fingerprinted non-registered related persons required to be fingerprinted in violation of Section 17(f) of the Exchange Act, Rule 17f-2 of the Exchange Act and Rule FINRA 2010.
From October 2019 to the present, Dalmore failed to report or timely report the outside business activities of ten of its registered agents on their Uniform Applications for Securities Industry Registration (U4 Forms), in violation of Article V, Section 2( ) of the FINRA Bylaws and FINRA Rules 1122 and 2010.
From October 2020 to the present, Dalmore has violated the content standards of FINRA Rule 2210 through retail communications on three websites and one web-based video series promoting the firm’s securities activities.
From May 2022 through at least September 2023, Dalmore failed to specify a date by which the minimum increase contingency of a private offering had to be met and released investment funds to the issuer before the contingency was met, in willful violation of Section 10( b). of Rule 10b-9 of the Exchange Act and the Exchange Act, and in violation of 2010 FINRA Rule.
Finally, from August 2022 to January 2023, Dalmore provided late, incomplete and inaccurate responses to FINRA’s requests for documents and information, in violation of FINRA Rules 8210 and 2010.
In addition to the $375,000 fine, the company agreed to a censure.