Last week Securities America CEO Steve McWhorter announced his decision to retire after 22 years of service. His stated reason for leaving is that he wishes to spend time with his family, and he has stressed that there is no underlying reason for his departure. Despite this, some are questioning the timing of his announcement as a spate of client arbitration claims hit the Financial Industry Regulatory Authority (FINRA).
This string of complaints stem from multiple Securities America products ranging from the now defunct Medical Capital Holdings Inc., to Tenants In Common (TIC) products that have failed. Medical Capital is perhaps the most flagrant managerial failure for Securities America as a court appointed receiver has demonstrated overt fraud in court filings on the part of the medical receivables company. Clients of Securities America have lost millions as a result of this and other product failures.
Despite these recent failures, McWhorter is praised for the growth of Securities America during his time there. He is expected to remain in his current position until a willing replacement is found, and given the great deal of disgruntled clients and scrutinizing regulators, he may be waiting quite some time.
SEC (Securities and Exchange Commission) lawyers specialize in navigating the complex regulatory landscape of securities law in the United States. These legal professionals play a crucial role in ensuring that companies comply with federal securities regulations, which are designed to protect investors and maintain the integrity of financial markets.
An SEC lawyer’s responsibilities include advising clients on matters related to securities offerings, mergers and acquisitions, corporate governance, and compliance with SEC rules. They also represent clients in investigations and enforcement actions brought by the SEC, where they defend against allegations of securities fraud, insider trading, and other violations.
Due to the high stakes involved, SEC lawyers must possess a deep understanding of financial regulations, as well as the ability to analyze and interpret complex legal documents. They often work with corporations, financial institutions, investment advisers, and public companies to ensure that all transactions and disclosures are in line with SEC requirements.
In addition to their advisory role, SEC lawyers are also involved in litigation, representing clients in court or in administrative proceedings. Their expertise is critical in helping businesses avoid costly penalties and reputational damage, making them indispensable in the financial and corporate sectors.