According to FINRA, Vorpahl Wing Securities Inc. has been censured, fined $25,000, and required to certify remediation for conducting a securities business while failing to maintain required minimum net capital.

The firm overstated its net capital due to inaccurate computations, incurring net capital deficiencies on at least 10 business days ranging from $1,593.61 to $40,274.44. The errors included improperly classifying unearned investment advisory fees as allowable assets and using cash-basis accounting instead of the required accrual method.

Despite its net capital falling below required minimums on at least 10 business days between January 2022 and March 2023, the firm did not file a Net Capital Deficiency Notice with the SEC or FINRA until March 2023. The firm also failed to prepare net capital computations each month, instead only preparing them during months when FOCUS reports were due.

The firm's supervisory procedures did not include processes for supervising the preparation of financial statements or net capital computations. In practice, the firm's bookkeeper prepared these documents without supervision by the Financial and Operations Principal.

Net capital requirements exist to ensure broker-dealers maintain sufficient liquid assets to meet their obligations to customers. When firms operate below these thresholds, customer funds and securities could be at risk if the firm faces financial difficulties.