According to FINRA, WestPark Capital, Inc. was censured, fined $475,000, and ordered to pay $218,160.36 plus interest in restitution for multiple serious violations including AML program failures, supervisory deficiencies, and unethical conduct. The firm repeatedly opened accounts for customers referred by three high-risk investment banking clients despite red flags indicating the issuers were controlling account activity.

The firm's AML program suffered from multiple deficiencies in customer identification and due diligence requirements. It failed to reasonably supervise an inexperienced, unregistered analyst who served as the primary contact with the issuers and referred customers. The firm did not supervise or retain communications between this analyst and the issuers, which occurred primarily in Mandarin on an unapproved messaging system, and made him responsible for investigating AML inquiries without adequate oversight.

The firm also engaged in unethical conduct related to a 2021 AWC requiring rescission offers to promissory note holders. Before executing that AWC, the firm induced all but three noteholders to sign agreements not to accept any rescission offer, without FINRA's knowledge. The firm later tried to enforce these agreements and falsely told FINRA that no noteholders had requested rescission when one explicitly had.

Additional violations included failing to supervise a representative who engaged in unsuitable trading and charged excessive markups causing $190,516.99 in customer losses, and failing to obtain best execution on corporate bond trades, costing customers $27,643.37. The firm is required to retain an independent consultant to review its AML and compliance systems. This case demonstrates a pattern of putting profits ahead of regulatory compliance and investor protection.