Make us your home page
Instagram

Report: Regulator takes control of Tampa's GunnAllen Financial

TAMPA – GunnAllen Financial Inc., a Tampa investment brokerage that was briefly controlled by businessman John Sykes, has fallen below minimum capital rules set by federal regulators and did not open for full-service business this morning.

Gunnallen has suffered a history of controversies and questions about its financial viability. Sykes severed his ties to GunnAllen late last year without comment.

A story dated Monday in the trade publication Investment News says the Financial Industry Regulatory Authority, or Finra, told GunnAllen last week it would be in a net capital violation as of Monday morning — if the firm did not receive an infusion of cash over the weekend.

GunnAllen executives told employees they were losing their jobs this morning at the company's Tampa headquarters, the story stated.

A spokesman at FINRA had no comment. Typically, a regulator-seized brokerage continues to operate to help investors wind down or liquidate their accounts, but the firm is otherwise not allowed to conduct trades.

The trade publication reports that GunnAllen faces a raft of lawsuits with investors seeking as much as $50 million in damages. Many of those claims stem of rogue broker Frank Bluestein who allegedly steered clients into a Ponzi scheme that eventually went bust in 2007.

GunnAllen also faces client lawsuits over the sale of Provident Royalties LLC private placements. Last week, Finra expelled the broker-dealer instrumental in marketing those deals, Provident Asset Management, for its role in a $475 million Ponzi scheme, the regulator told Investment News.

Report: Regulator takes control of Tampa's GunnAllen Financial 03/22/10 [Last modified: Wednesday, March 24, 2010 1:17pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. United Airlines CEO to investors: We'll be more focused on customers

    Airlines

    CHICAGO — The CEO of United Airlines assured shareholders Wednesday that the company is doing all it can to be more customer-friendly since video surfaced of a passenger being violently ejected from a plane last month.

    Chicago Police arrest protesters after they sat down in a busy street blocking traffic outside a United Airlines shareholders meeting Wednesday, in downtown Chicago. The people who were arrested were protesting the low pay of employees of companies that provide meals and other services for United Airlines at Chicago's O'Hare Airport.
[Associated Press]
  2. Humana adding 200 telemarketing jobs in Tampa Bay

    Economic Development

    TAMPA — Health insurance company Humana Inc. is hiring more than 200 workers in Tampa Bay. The Louisville, Ky.-based company said Wednesday that the new positions will focus on phone sales for Humana's direct marketing services department.

  3. Tampa Bay home prices still soaring amid tight supply

    Real Estate

    Sales of Tampa Bay homes dropped in April but prices surged yet again as Florida's real estate market continued to be defined by tight supply and high demand.

    The historic Century Oaks estate overlooking Clearwater Harbor has sold for $11.18 million, the most ever paid for a home in the Tampa Bay area. [Courtesy: Coastal Properties Group]
  4. These days, don't hit the theme park without an app and a phone charger

    Florida

    Emile Crawford stocks two back-up phone battery chargers these days when she takes her kids to Disney World. But she dare not venture into a theme park without a smart phone app, an accessory becoming as necessary as sunscreen in Florida theme parks.

    A wristband visitors will wear at the new Volcano Bay water park in Orlando, Florida. The wristband, called Tapu Tapu, tells you when it's your turn to get on a ride. It also lets you pay for food so you don't have to carry a wallet and opens lockers so you don't have to  carry a key. (Universal via AP)
  5. James Cameron, Zoe Saldana and more appear at Disney's Pandora

    Florida

    ORLANDO — As he stood on a stage at Disney World Wednesday, director James Cameron revealed his teenage dreams.

    Zoe Saldana tweeted a photo of herself from Wednesday's appearance at a new land in Disney's Animal Kingdom, Pandora -- the World of Avatar. The land is based on James Cameron film, in which she stars. Photo via Twitter.