Aletheia Securities Fined $25,000 For Repeated Trade Violations

Aletheia Securities, Inc., which was founded in 1997, “is a corporation seeking success through truth,” according to their official website. (http://www.aletheiaresearch.com/) The firm offers independent market research that does not rely on Wall Street research or security analysts, in addition to a wide array of investment strategy portfolios. Aletheia is based in Santa Monica, California, with operations in 14 states including New York, Massachusetts, Florida and Texas.

Since 2007, Aletheia has been fined and censured on two separate occasions by FINRA for repeatedly failing to report trade transactions to the NASD in a timely manner. After the latter incident, a $25,000 fine in May 2009, FINRA concluded that Aletheia had also incorrectly reported their transactions to clients. In addition, Aletheia lacked the supervision and training among its employees to achieve future compliance with securities laws and FINRA rules.

The ironically named Aletheia – derived from the classical Greek word for “truth” and “disclosure” – makes it difficult for any oversight over its investments if it cannot properly report the firm’s business to either clients or authorities.

FURTHER READING

Aletheia Securities Fined and Censured in 2007 for Failing to Report Trades

In May 2007, Aletheia Securities, Inc. accepted a $5,000 fine and a censure from FINRA, for failing to report trade transactions to the NASD. The firm is required to report each trade within 30 minutes of an executed transaction,

Aletheia was also ordered to revise its written procedures regarding the reporting of trades. However the firm was again fined in May of 2009 for, among other violations, the same NASD rule 6230 that states that each firm must report every trade without exceptional circumstances.