FINRA Hits CapFi Financial Partners with $15k Fine

Financial Industry Regulatory Authority (FINRA) fined CapFi Financial Partners LLC it accused of  misclassifying personal expenses as business expenses and violating FINRA Rules.

The regulator said from February 2016 to February 2018, MK—the owner, CEO, and CCO of CapFi—used the firm's credit card and bank account to pay for approximately $265,000 of his personal expenses, including plane tickets, accommodations for family members, and goods or services with no connection to business.

Futher, CapFi then misclassified MK's personal expenses as business expenses of the firm, causing the firm's books and records to be inaccurate.

Accoding to FINRA, CapFi violated Section 17(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 17a-3 and 17a-5 thereunder, and FINRA Rules 4511 and 2010.

As a part of the settlement with FINRA, CapFi consents to the imposition of a censure and a fine in the amount of $15,000.

CapFi has been a member of FINRA since 2001. The Firm is headquartered in Vienna, Virginia, and has eight registered representatives and one registered branch office.