EarlyBirdCapital, Inc. agreed to pay a $150,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From May 2017 to April 2021, EarlyBird filed inaccurate and untimely Financial and Operating Combined Consolidated Securities (FOCUS) reports and maintained inaccurate books and records regarding its total debt and equity, in violation of Sec. 17(a) of the Securities Exchange Act of 1934, Exchange Act Rules 17a-3 and 17a-5, and FINRA Rules 4511 and 2010.
Also, from May 2017 through September 2022, EarlyBird failed to establish and maintain a system of oversight, including written oversight procedures (WSPs), reasonably designed to achieve compliance with the Exchange Act’s rules regarding net capital, FOCUS reports and required books and records, in violation of FINRA Rules 3110 and 2010.
EarlyBirdCapital, Inc. (EarlyBird), a member of FINRA since October 1992, is headquartered in Melville, New York and engages in investment banking and securities trading. EarlyBird employs approximately 20 registered agents in four branches, including its head office in Melville.
In addition to the $150,000 fine, the company agreed to a censure.