Two Broker-Dealers Going Out of Business Following Major Losses

Taylor Capital Management and Triloma Securities set to close for different reasons.

The Sonn Law Group is investigating allegations into Taylor Capital Management. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Taylor Capital Management

Taylor Capital Management (Taylor Capital) of Woodstock, Georgia is facing multiple investor claims stemming from brokers’ sales of 1 Global Capital investments — a $280 million loan fraud. The fraud has decimated Taylor Capital, which filed its termination notice with FINRA last month.

“We’re wiped out,” stated Taylor Capital president and owner Preston A. Spears. “At the height, we had 75 reps, and all the reps have left. The arbitration claims filed against us are in excess of $50 million.”

Taylor Capital has been in business for ten years, but only received its first complaint in 2019. This occurred when a small number of Taylor Capital reps sold 1 Global investments, a sale that was not approved by the firm according to Spears.

“We had a couple reps who did an outside business activity, 1 Global. Taylor Capital Management made no money from the transactions. I wish all the investors the best and hope they recover the money from the 1 Global bankruptcy,” Spears said.

Just this month, Taylor Capital lost a $1 million arbitration claim that alleged fraud related to the sale of 1 Global Capital investments to five clients. The award included punitive damages of $400,000. The arbitration panel cited “reckless disregard of high risk and reckless disregard of securities statutes by selling unregistered securities.”

Kalju Nekvasil, the attorney for the clients who won the $1 million arbitration award, said it was “the first big claim involving 1 Global.” He said he intends to pursue the claim even though Taylor Capital is going out of business by focusing on the firm’s errors and omissions insurance.

Triloma Securities

Triloma Securities is a Florida-based wholesaler of alternative and real estate funds. The four-year-old firm is not generating enough sales to stay open. The costs of running a broker-dealer undercut Triloma’s ability to remain open.

Larry Goff, one of the firm’s owners, stated, “Triloma Securities is shutting down, but the private equity, management side is still up and running. There is just not enough business for us to stay open. We still have a couple deals but it’s not enough business to keep the team.”

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed misconduct, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.