Velocity Capital, LLC has agreed to pay a fine of $125,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From at least January 2016 through November 2022, Velocity Capital failed to:

• reasonably evaluate six disclosed outside business activities (OBAs) in violation of FINRA Rules 3270.01 and 2010;
• reasonably respond to red flags that representatives were engaged in undisclosed OBAs in violation of FINRA Rules 3110 and 2010; and
• reasonably supervise four private securities transactions (PSTs) in violation of FINRA Rules 3280 and 2010.

Additionally, from at least July 2016 through the present, Velocity Capital failed to reasonably supervise or preserve its registered representatives’ business-related communications on unapproved, non-firm communications platforms, in violation of the Securities Exchange Act of 1934 § 17(a), Exchange Act Rule 17a-4, and FINRA Rules 3110, 4511, and 2010.

On top of the $125,000 fine, Velocity Capital has agreed to a censure and an undertaking.

Velocity Capital has been a FINRA member since 2015. The firm is headquartered in New York, New York, and employs approximately 20 registered representatives across four branch offices. The firm provides securities lending and borrowing services for broker-dealers and other financial institutions. The firm also engages in proprietary trading.