Honeycomb Portal LLC has agreed to pay a fine of $ 140,000 as part of a settlement with the Financial Industry Regulatory Authority (Finra).
Between March 2021 and January 2023, Honeycomb acted as an intermediate for a publisher (publisher A) in two Reg Cf bids. A separate funding gateway associated with publisher A (funding gate A) also performed some functions on both bids that must be performed by only one intermediate.
Because Honeycomb knew or had to know that the bids were not made exclusively through a single intermediate, as required by Rule 100 (A) (3), it did not have a reasonable basis to believe that publisher A complied with the requirements of the Reg Cf, in breach of Article 30 (A).
In addition, from March 2021 until today, Honeycomb has failed to make and maintain some electronic communications with publisher A on the two bids, in breach of Article 404 (A) and the Finra 200 (A) Gateway.
For these violations, Honeycomb was accused, imposed a fine of $ 140,000 and agreed to commit to certifying his corrective action.
Honeycomb is a funding gateway that functions as a intermediate for Crowdfunding titles on the basis of section 4 (a) (6) of the 1933 Mobile Values Act (Crowdfunding or Reg CF). Located in Pittsburgh, PA, he has been a member of the Finra funding gate since December 2017.