Chattanooga-based Wortham Labs fined for selling unregistered security by unlicensed broker
Wortham Labs was fined $1,000 for the sale of an unregistered security by an unlicensed broker/dealer.
The Tennessee Department of Commerce & Insurance has fined Chattanooga-based Wortham Labs fined for the sale of an unregistered security by an unlicensed broker/dealer.
The disciplinary action against company, found to be in violation of the state’s securities law, was announced via news release Tuesday.
Wortham was fined $1,000 in a consent order that was finalized August 12, 2016.
The company admited that a security/investment contract sold to a Tennessee investor was not registered with TDCI’s Securities Division as required by state law. In addition, the security/investment contract was sold directly by Wortham Labs and not by an agent or broker properly registered with TDCI, also a violation of the law.
Wortham Labs has complied and cooperated with the investigation by the TDCI Securities Division and has since made full restitution of the investment funds to the investor.
“Orders like this one are necessary for the protection of investors,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We urge Tennesseans to know the law before buying or selling securities.”
The Consent Order between TDCI and Wortham Labs can be found on the TDCI website. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of security and insurance professionals.
If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900. To file a complaint online, visit https://tn.gov/commerce/article/securities-file-a-complaint.