FINRA’s Department of Enforcement investigated Brenner and alleged he participated in two fraudulent private placement transactions referred to as PCG and UR LLC. With respect to PCG, FINRA found that PCG’s private placement memorandum and program summary contained misleading claims about the security and safety of the investments, and forecasted investment returns that clients could expect.
The summary reportedly claimed the investment was backed by real estate; that the investment was unencumbered in non-leveraged real estate that would allow for the investor to receive absolute returns; and that the investment strategy would be focused providing investors with a positive return regardless of market performance. FINRA claimed that these statements were unbalanced and misleading, and the investments were actually speculative and carried substantial risk of loss.
FINRA alleged Brenner also misrepresented an offering in UR LLC, an entity created in 2015 that was designed to fund medical and healthcare practices. FINRA found Brenner negligently made material misstatements or material omissions concerning the UR LLC offerings. FINRA also found that Brenner’s representations were unbalanced, unfair, and which were exaggerated and misleading to the investors. Specifically, FINRA found that Brenner represented to investors that he would receive 10% commission, when in fact he received the aforementioned 11.5%. Additionally, FINRA found that the executive summary provided to investors made references to the UR private placement memorandum that was not even prepared and in existence when such statements were made.
Based upon the foregoing misconduct, FINRA alleges Brenner violated FINRA Rules 3110, 2111, 2210(d)(1), and Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”). For example, FINRA Rule 3110 requires that a member firm establish, maintain and enforce a supervisory system and written supervisory procedures that are reasonably designed to achieve compliance with applicable laws, rules and regulations.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages investing with Brenner while he worked for First American, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.