First, the chairman of GunnAllen Financial's parent company resigned abruptly earlier this month. Now a securities regulator is probing its books.
In recent weeks, Investment News, a securities industry journal, cited anonymous sources in reporting that well-known Tampa businessman John Sykes resigned Dec. 2 as chairman of parent company GunnAllen Holdings. Also leaving were two other members of Sykes' investment group, Tampa attorney Martin Traber and Scott Bendert.
This week, the publication again cited anonymous sources in reporting that the Financial Industry Regulatory Authority, the independent regulator of securities firms, is investigating whether GunnAllen has enough capital. If FINRA determines it doesn't have enough capital, the firm could be forced to shut down, Investment News writes.
On Monday, David Levine, an executive vice president with GunnAllen, confirmed that FINRA has been looking at the firm's level of capital. He said the regulator started its probe after Sykes' quickly stepped aside.
"It's FINRA's obligation to see what that means for the firm in terms of capital," Levine said.
Herb Perone, a spokesman for the regulatory agency, said he couldn't confirm whether FINRA is looking at GunnAllen.
Sykes, who founded the customer service company Sykes Enterprises, bought GunnAllen with a group of investors in September 2008. Neither he nor Traber could be reached for comment Monday.
GunnAllen has been touched by scandal recently. In September, the Securities and Exchange Commission filed suit accusing one of GunnAllen's top independent brokers, Frank Bluestein of the Detroit area, of steering elderly clients into investing in a $250 million Ponzi scheme.
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