Howard Bailey Securities, Llc

Allegations: HOWARD BAILEY DIRECTLY AND INDIRECTLY DISSEMINATED NUMEROUS ADVERTISEMENTS CONTAINING AN ENDORSEMENT THAT HOWARD BAILEY IS THE "OFFICIAL WEALTH MANAGEMENT PARTNER OF" A SPECIFIC UNIVERSITY ATHLETIC PROGRAM WITHOUT INCLUDING DISCLOSURES REQUIRED BY THE MARKETING RULE. FURTHER, HOWARD BAILEY DISSEMINATED AN ADVERTISEMENT CLAIMING TO CONTAIN TESTIMONIALS THAT DID NOT COME FROM CURRENT CLIENTS AND THEREFORE DID NOT MEET THE DEFINITION OF TESTIMONIALS. Status: Final Sanction Detail: DISPOSITION RESULTED IN $90,000 FINE AND PAID SEPTEMBER 2024. Summary: IN SEPTEMBER, 2024, THE SECURITIES AND EXCHANGE COMMISSION ("SEC") RELEASED THE RESULTS OF THEIR INVESTIGATION INTO COMPLIANCE WITH RULE 206(4)-1, WHICH FOCUSES ON INVESTMENT ADVISER MARKETING. HOWARD BAILEY SECURITIES, LLC WAS AMONG THOSE FIRMS FOUND TO HAVE VIOLATED RULE 206(4)-1(B)(1), WAS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF RULE 206(4)(B)(1), CENSURED FOR ITS CONDUCT, AND ORDERED TO PAY A CIVIL MONETARY PENALTY IN THE AMOUNT OF $90,000. HOWARD BAILEY ALSO AGREED TO REVISE ALL ADVERTISEMENTS CONTAINING THE TESTIMONIALS OR ENDORSEMENTS IN QUESTION TO BRING THE COMMUNICATIONS INTO COMPLIANCE WITH RULE 206(4)-1(B)(1), OR IN THE ALTERNATIVE, PERMANENTLY STOP DISSEMINATING ALL SUCH ADVERTISEMENTS. THE SEC SETTLED ISSUE WAS EXCLUSIVELY IN RELATION TO MARKETING MATERIALS DISSEMINATED BY HOWARD BAILEY AND IS NOT RELATED TO ANY INVESTMENTS, INVESTMENT STRATEGIES OR FINANCIAL PLANS IMPLEMENTED BY HOWARD BAILEY. HOWARD BAILEY IS COMMITTED TO CAREFULLY REVIEWING OUR COMPLIANCE PROCEDURES AND IMPROVING OUR PROCESSES TO ENSURE THE MARKETING MATERIALS THAT HOWARD BAILEY DISSEMINATES COMPLY FULLY WITH RULE 206(4)-1(B)(1).