Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
November 2009
Paramount BioCapital, Inc.
AWC/2007011942201/November 2009

The Firm 

  • failed to promptly file documents and information relating to the shelf-offerings of issuers with FINRA’s Corporate Financing Department;
  • sold shares in the public offerings of the stock of issuers without first obtaining a required no objections letter from FINRA;
  • failed to engage a qualified independent underwriter to perform due diligence and recommend the offering price during its participation in public offerings in which the firmand its associated persons had sufficient holdings of the common equity of the issuers to constitute a presumptive conflict of interest.
Paramount BioCapital, Inc.: Censured; Fined $20,000
Enforcement Actions