FINRA Fines Dinosaur Financial Group $85,000 Over Net Capital Failures | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis

The New York-based broker-dealer operated below minimum net capital requirements for 19 months while concealing a multi-million dollar guarantee from regulators.

The Financial Industry Regulatory Authority (FINRA) has censured and fined Dinosaur Financial Group, LLC $85,000 following findings that the New York-headquartered broker-dealer concealed a $4.3 million lease guarantee from regulators and operated below minimum net capital requirements for nearly two years.

According to a Letter of Acceptance, Waiver, and Consent (AWC) submitted by the firm, Dinosaur Financial guaranteed its parent company’s 10-year commercial real estate lease in April 2022 without providing the required prior written notice to FINRA. The guarantee, valued by the firm and its external auditor at between $2.8 million and $3 million, was not disclosed until FINRA initiated a cycle examination in late 2023.

By failing to include the guarantee as a liability in its net capital calculations, Dinosaur Financial operated below its minimum net capital requirement — which ranged between $274,200 and $450,000 — for 19 of 20 months between April 2022 and November 2023. The largest single deficiency reached $2,905,172, with an average shortfall of approximately $1.45 million. Despite this, the firm continued conducting a securities business throughout the period.

The firm also filed 20 inaccurate FOCUS reports, maintained erroneous books and records, and failed to provide timely notifications of its net capital deficiencies to FINRA and the SEC, as required under Exchange Act rules.

FINRA found Dinosaur Financial in violation of multiple Securities Exchange Act provisions and FINRA rules. Without admitting or denying the findings, the firm accepted a censure and an $85,000 fine.