Provident Royalties Claims Another Independent B-D
Securities Network LLC out of Norcross, Georgia joins the list of small independent broker dealers that have bitten the dust as a result of selling high risk offering of Provident Royalties LLC, according to a release by Investment News. Securities Network only sold $215,000 of the Provident preferred stock according to bankruptcy proceeding filings in Dallas, Texas. Even though the sale of $215,000 is not a huge amount, it was enough to undo the firm which had only $261,260 in revenue and a net loss of $18,000 in 2010, according to filings with the SEC. Over the last several years the firm’s profitability had been continually shrinking and the demands of defending claims and lawsuits led to its demise.
Independent broker dealers accounted for the sale of some $485 million of Provident shares, many of whom have been forced out of business because of the costs associated with defending those claims along with claims for another series of failed private placements from Medical Capital Holdings LLC. A few of the firms that shuttered their doors were GunnAllen Financial, QA3 Financial and Jesup & Lamont Securities, among many others.,