The Financial Industry Regulatory Authority (FINRA) has announced a settlement with World Choice Securities, Inc (WCS) and Robert Kenneth Cargin, a general securities representative and general securities principal.

In November and December 2022, WCS failed to reasonably supervise the due diligence of a private real estate offering in violation of FINRA Rules 3110 and 2010.

From June 30, 2020, to December 2022, WCS also failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Rule 15l-1 of the Securities Exchange Act of 1934 (Regulation Best Interest) and FINRA Rules 3110 and 2010.

For these and other violations, WCS was censured and fined $28,000.

In February 2023, Cargin executed 19 approval forms for private securities transactions (PSTs) that were dated between November 2021 and August 2022, when the transactions had occurred, which created the inaccurate impression that Cargin had preapproved these transactions when he had not.

Cargin therefore violated FINRA Rule 2010. He was suspended for four months and fined $5,000.

World Choice Securities (WCS) has been a FINRA member firm since January 1993. The firm is headquartered in Columbus, Ohio, and it has 11 registered representatives and four branch offices. WCS currently has a retail customer base and, until December 2022, its business included, among other things, private placements sold pursuant to Regulation D of the Securities Act of 1933.

Cargin first became registered with FINRA in May 1988 as a General Securities Representative through an association with a member firm and registered with FINRA as a General Securities Principal in October 1991 through an association with a member firm. In October 2017, Cargin became CEO and president of WCS and became registered with FINRA in various capacities, including as a General Securities Representative and General Securities Principal, through an association with WCS.